LAS VEGAS, Oct. 28 /PRNewswire-FirstCall/ -- MGM Resorts
International (NYSE: MGM) today announced that it has completed its
previously announced issuance of $500 million in aggregate
principal amount of 10% senior notes due 2016 at an issue
price of 98.897%. The Company received approximately
$486 million in net proceeds.
The Company intends to use the net proceeds of the offering,
together with a portion of the proceeds of its October 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. The Company has provided
notice of such repayment to the lenders under its senior credit
facility, and upon such repayment the maturity date of loans and
revolving commitments aggregating approximately $3.6 billion 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 of 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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