LAS VEGAS - MGM Resorts (NYSE:MGM) International (NYSE: MGM) has upsized its public offering of senior notes, increasing the aggregate principal amount to $850 million, a rise from the initially announced $675 million. The 6.125% senior notes are due in 2029 and were priced at par. The transaction is set to finalize on September 17, 2024, pending the satisfaction of customary closing conditions.
The company plans to allocate the net proceeds from the notes offering to repay existing indebtedness, specifically its 5.750% senior notes due in 2025. The remaining funds are earmarked for transaction-related fees, expenses, and general corporate purposes. Until these allocations are made, MGM may place the net proceeds in short-term, interest-bearing accounts, securities, or similar investments.
The notes are to be unsecured senior obligations of MGM Resorts, backed by guarantees from nearly all of the company's wholly owned domestic subsidiaries that also guarantee its other senior indebtedness. These notes will be on par with all current or future senior unsecured indebtedness of MGM Resorts and each guarantor.
A consortium of banks, including BofA Securities, J.P. Morgan Securities, and Barclays (LON:BARC) Capital, among others, will serve as joint book-running managers for the offering. Additional co-managers include Goldman Sachs (NYSE:GS) & Co. LLC and Wells Fargo (NYSE:WFC) Securities, LLC.
The offering will be made under a prospectus supplement and an accompanying prospectus filed with the Securities and Exchange Commission (SEC) as part of MGM's existing shelf registration statement. A final prospectus supplement for the notes offering will also be filed with the SEC.
MGM Resorts is a global entertainment company known for its portfolio of destination resorts, including properties in Las Vegas and other international locations. The company is also involved in online gaming and sports betting through its ventures, BetMGM and partypoker, and is exploring expansion opportunities in Asia, particularly Japan.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities, nor will there be any sale of these securities in jurisdictions where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of those jurisdictions. It also does not serve as a notice of redemption for the 5.750% senior notes due in 2025.
The information in this article is based on a press release statement from MGM Resorts International.
In other recent news, MGM Resorts International has unveiled its plan to offer $675 million in aggregate principal amount of senior notes due in 2029. The primary aim of this move is to refinance existing debt, specifically to repay the company's outstanding 5.750% senior notes due in 2025. Until the repayment of its indebtedness, MGM might place the net proceeds in short-term interest-bearing accounts, securities or similar investments. The offered notes will be unsecured senior obligations and will be guaranteed by the company's wholly owned domestic subsidiaries.
BofA Securities, J.P. Morgan Securities, and Barclays Capital are among the consortium of banks that will act as joint book-running managers for the offering. This offering is part of MGM Resorts' broader strategy to maintain a strong balance sheet and pursue growth opportunities. The company's plans are based on forward-looking statements, which involve certain risks and uncertainties. This information is based on a recent press release statement from MGM Resorts International.
InvestingPro Insights
As MGM Resorts International (NYSE: MGM) prepares to finalize its upsized public offering of senior notes, a closer look at the company's financial health through InvestingPro data reveals a robust picture. With a Price/Earnings (P/E) Ratio of 8.96 as of the last twelve months ending Q2 2024, MGM demonstrates a valuation that could be seen as reasonable in the context of the entertainment and gaming industry. This is further substantiated by a PEG Ratio of 0.03, suggesting that the company's earnings growth is potentially undervalued relative to its peers.
InvestingPro data also shows a striking Revenue Growth of 138.17% over the last twelve months as of Q2 2024, indicating a strong upward trajectory for MGM's earnings potential. This growth is complemented by a solid Gross Profit Margin of 80.99%, reflecting the company's ability to maintain profitability amidst its expansion efforts.
InvestingPro Tips highlight the importance of considering a company's EBITDA Growth, which for MGM stands at an impressive 357.48% over the last twelve months as of Q2 2024. This metric showcases the company's operational efficiency and its ability to generate earnings before interest, taxes, depreciation, and amortization. Additionally, with a Return on Assets of 15.26%, MGM exhibits a commendable ability to generate profits from its asset base.
For investors looking to delve deeper into MGM's financials and future prospects, InvestingPro offers additional tips to help make informed decisions. Currently, there are numerous other tips available on InvestingPro that could provide further insights into MGM Resorts' performance and potential investment opportunities.
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