LAS VEGAS, June 17, 2011 /PRNewswire/ -- MGM Resorts
International (NYSE: MGM) announced today that it has closed the
previously announced private offering to Emerging Corporate Limited
(an entity owned indirectly by Ms. Pansy
Ho) of $300 million in
aggregate principal amount of its 4.25% convertible senior notes
due 2015. The Company received approximately $311 million in net proceeds from the
offering. The net proceeds will be used to repay a portion of
the Company's outstanding revolving indebtedness under its senior
credit facility.
"The closing of this transaction represents continued growth and
alignment across our businesses with our MGM China Holdings joint
venture partner, Ms. Pansy Ho, and
further improves the liquidity of MGM Resorts International," said
Jim Murren, Chairman and Chief
Executive officer of MGM Resorts International.
The notes are 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 will pay interest
semi-annually at a rate of 4.25% per annum and mature on
April 15, 2015. The notes are
convertible at an initial conversion rate of approximately 53.83
shares of the Company's common stock per $1,000 principal amount of the notes,
representing an initial conversion price of approximately
$18.58 per share of the Company's
common stock. The initial conversion rate is subject to
adjustment under certain circumstances. The notes are convertible
into shares of the Company's common stock at any time prior to the
close of business on the third scheduled trading day immediately
preceding the maturity date of the notes.
The notes, and any shares of the Company's common stock issuable
upon conversion of the notes, have not been registered under the
Securities Act of 1933, as amended (the "Securities Act"), or any
state securities law 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, and any shares of the Company's
common stock issuable upon conversion of the notes, will be offered
only to "qualified institutional buyers" under Rule 144A of the
Securities Act.
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 and equity generally, for the securities of gaming,
hospitality and entertainment companies and for the Company's
indebtedness and common stock 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.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is one of the world's
leading global hospitality companies, operating a peerless
portfolio of destination resort brands, including Bellagio, MGM
Grand, Mandalay Bay and The Mirage. In addition to its 51% interest
in MGM China Holdings and the MGM Macau, the Company has
significant holdings in gaming, hospitality and entertainment, owns
and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in three
other properties in Nevada and
Illinois. One of those investments
is CityCenter, an unprecedented urban resort destination on the Las
Vegas Strip featuring its centerpiece ARIA Resort & Casino.
Leveraging MGM Resorts' unmatched amenities, the M life loyalty
program delivers one-of-a-kind experiences, insider privileges and
personalized rewards for guests at the Company's renowned
properties nationwide. Through its hospitality management
subsidiary, the Company holds a growing number of development and
management agreements for casino and non-casino resort projects
around the world. MGM Resorts International supports responsible
gaming and has implemented the American Gaming Association's Code
of Conduct for Responsible Gaming at its gaming properties. The
Company has been honored with numerous awards and recognitions for
its industry-leading Diversity Initiative, its community
philanthropy programs and the Company's commitment to sustainable
development and operations. For more information about MGM Resorts
International, visit the Company's Web site at
www.mgmresorts.com.
SOURCE MGM Resorts International