Casino Company Generates $486M In Selling Senior Notes

October 29th, 2010 -by Glen Farmer

With a private offering of $500 million senior notes, MGM Resorts International raised approximately $486 million. This fell somewhat short of the $494.5 million that the company had anticipated on generating through offering the bonds.

The notes, which are due 2016, were priced at 98.9 percent of the principle amount of the notes.

A public stock offering is also in the plan that MGM Resorts has been following in order to recover from the financial states which the company has found itself in. The plan is to culminate in extending loans and commitments from October of 2011 to February of 2014.

The public offering had even boosted MGM’s stocks in the afternoon, albeit marginally. A 9 cent gain had been reported.

The company is not alone in its offerings to the public. Boyd Gaming is another corporation which is offering senior notes, and this company is, according to a press release, equal to $500 million.

America’s ailing economy has hurt many casino companies, with those in Reno, NV and Atlantic City, NJ, hurting the most.

The USA online casinos have managed to flourish despite the recession, partially due to the relative lack of overhead. The industry has not yet been regulated in the United States, and thus there are no taxes being collected by the state. Some brick and mortar casino companies have even been contemplating adding these casinos as an option, though the concept has not yet caught on.

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