LAS VEGAS, Oct. 25 /PRNewswire-FirstCall/ -- MGM Resorts
International (NYSE: MGM) today announced that it has priced
$500 million in aggregate principal
amount of its 10% senior notes due 2016 at an issue price of
98.897%. The transaction is expected to close on October 28, 2010. The Company plans to use
the net proceeds from the offering, together with a portion of the
proceeds of its October 12, 2010
common stock offering to retire the $1.2
billion in commitments under its senior credit facility
which are scheduled to mature in October
2011. Upon such repayment, the remaining $3.6 billion of commitments under the Company's
senior credit facility will be extended to February 2014.
The notes will be general unsecured senior obligations of the
Company, guaranteed by substantially all of the Company's
wholly-owned domestic subsidiaries, which also guarantee the
Company's other senior indebtedness, and equal in right of payment
with, or senior to, all existing or future unsecured indebtedness
of the Company and each guarantor.
The notes have not been registered under the Securities Act of
1933, as amended (the "Securities Act"), or any state securities
laws and may not be offered or sold in the United States or to any U.S. persons
absent registration under the Securities Act, or pursuant to an
applicable exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and applicable
state securities laws. The notes will be offered only to
"qualified institutional buyers" under Rule 144A of the Securities
Act or, outside the United States,
to persons other than "U.S. persons" in compliance with Regulation
S under the Securities Act.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the notes, nor shall there be any
offer, solicitation or sale of any notes in any jurisdiction in
which such offer, solicitation or sale would be unlawful. The
Company gives no assurance that the proposed offering can be
completed on any terms.
Statements in this release which are not historical facts are
"forward-looking" statements and "safe harbor statements" within
the meaning of Section 21E of the U.S. Securities Exchange Act of
1934, as amended, and other related laws that involve risks and/or
uncertainties, including risks and/or uncertainties as described in
the Company's public filings with the Securities and Exchange
Commission. We have based those forward-looking statements on
management's current expectations and assumptions and not on
historical facts. Examples of these statements include, but
are not limited to, statements regarding the Company's expectations
to close on the sale of the notes and how the Company will use the
proceeds of the offering. These forward-looking statements
involve a number of risks and uncertainties. Among the
important factors that could cause actual results to differ
materially from those indicated in such forward-looking statements
include market conditions for corporate debt generally, for the
securities of gaming, hospitality and entertainment companies and
for the Company's indebtedness in particular. In providing
forward-looking statements, the Company is not undertaking any duty
or obligation to update these statements publicly as a result of
new information, future events or otherwise except as required by
law.
SOURCE MGM Resorts International
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