U.S.-based casino operator MGM Resorts International is doubling the size of a public offering for senior notes.
It is now offering US$1 billion of the 5.750-percent unsecured senior notes – due in 2025 at par – compared to the US$500 million proposed in a preliminary prospectus.
The company said it intends to use the net proceeds from the offering for “general corporate purposes, which could include refinancing existing indebtedness, funding a portion of the cost of acquisitions the company consummates, paying dividends on common stock or repurchasing common stock in accordance with the company’s share repurchase programme”.
MGM Resorts added that pending such use, it might invest the net proceeds of the offering in “short-term, interest-bearing accounts, securities or similar investments”.
The transaction is expected to close on June 18, the company said in a Thursday press release.
The casino group has ambitions for a number of capital-intensive ventures, including a casino licence in Japan, where the capital cost of a resort could be US$10 billion, according to James Murren, MGM Resorts’ chairman.
MGM Resorts is the parent of Macau casino licensee MGM China Holdings Ltd, which is the operator of the MGM Macau and MGM Cotai casino resorts.
In May, Grant Bowie, chief executive of MGM China, mentioned that the Macau unit would like to build a 900-room hotel tower extension to MGM Cotai “some time in the next three years”. MGM Cotai launched to the market in February.
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"I am not going to speculate on what the [casino licence refreshment] tender requirements would be. I have full confidence and faith in the Macau government to treat everyone fairly"
Wilfred Wong Ying Wai
President and chief operating officer of Macau-based casino operator Sands China