Global gaming and entertainment company MGM Resorts International said that it has issued $750 million in senior secured notes, in accordance with an earlier announcement. The offering has a rate of 6.500% and is due in 2032.
The extra capital, according to MGM Resorts’ announcement, will be used to repay outstanding debts and new investments.
According to MGM Resorts, a part of the proceeds from the offering will repay the outstanding 6.750% senior notes due 2025. Following that, MGM Resorts also plans to invest in short-term interest-bearing accounts, securities or similar investments.
Senior notes have lower rates than other bonds and therefore are associated with lower risk. Thanks to its robust financial position, MGM’s credit rating, according to Fitch, is standing at “stable.”
MGM Continues to Pursue Growth
Speaking of MGM Resorts International, the company remains bullish on grabbing new opportunities and expanding its geographical footprint. The casino and hospitality giant recently expressed its confidence in the success of BetMGM, a brand that it co-runs together with fellow gambling powerhouse Entain.
However, MGM also announced that it plans to acquire a technology firm in order to cut some losses. Currently, the BetMGM brand is relying on Kambi’s betting tech, forcing it to pay fees.
According to CEO Hornbuckle, MGM might also consider acquiring a live dealer supplier, as it currently uses Evolution.
In terms of geographical expansion, MGM remains bullish on capitalizing on promising emerging markets. While the company postponed its Dubai casino plans, Hornbuckle said that his team will lie down in wait until the UAE warms up toward the industry.
In the meantime, MGM was among the first companies to turn its gaze toward Thailand as the country continues its efforts to launch casino gaming. According to some analysts, the best-case scenario for the country may see it launch a casino resort before Japan does.
And speaking of Japan, MGM is currently working on the country’s first integrated resort. The Osaka project should be completed by 2030, allowing the Land of the Rising Sun to tap into the opportunities offered by the casino industry.