MGM Resorts Sells Senior Bonds for $750m

MGM Resorts International reported that it "listed an improved $750 million public bid in the aggregate key volume of 4.750% senior bonds." It is due in 2028 and rises from the initial $500m number. The deal is due to end of October 13, 2020.

The notices given would have the same status as all other senior notes published by the group. MGM said in the release:

 "The notes being offered will be general unsecured senior obligations of the Company, guaranteed by substantially all of the Company's wholly owned domestic subsidiaries that guarantee the Company's other senior indebtedness, and equal in right of payment with all existing or future senior unsecured indebtedness of the Company and each guarantor."

The proceeds from the sale will go into general corporate uses, including debt refinancing. The corporation maintained the right to spend the capital in interest-bearing short-term deposits or related assets. MGM's announcement also explicitly mentions the joint book-running managers and co-managers being added to the bid, including J.P. Morgan Securities LLC, Credit Agricole Securities (USA) Inc. and Barclays Capital Inc.

MGM resorts has yet to announce its 2020 Q3 results but the company has had a tumultuous year to date. Consolidated net sales fell by 91% in Q2 year-on-year by the casino operator, for a total of $290m. Since COVID-19 imposed closures, all of MGM's land-based casino properties across the globe have now been reopened.