$8 billion, completes "landmark refinancing
Casino operator MGM Resorts International raised more than $8 billion in long-term financing during 2012 and expects to take a "substantial charge" in the fourth quarter related primarily to fees and other expenses associated with the refinancing transactions.
In a statement Thursday the company, which operates 10 Strip resorts, including Bellagio, MGM Grand, Mandalay Bay, The Mirage and the CityCenter complex, completed what it termed a "landmark refinancing."
MGM Resorts, which has more than $13 billion in long-term debt, said it entered into a $4 billion amended credit agreement, issued $1.25 billion in new debt and retired older debt.
"This transformational transaction has been executed earlier than original expectations and at extremely attractive rates," MGM Resorts Chairman Jim Murren said in a statement. "With a significantly stronger capital structure now in place, our focus remains on continuing to maximize free cash flow, de-levering our balance sheet, and positioning our Company to execute on growth and development initiatives."
MGM Resorts Chief Financial Officer Dan D'Arrigo said the company would save approximately $230 million annually in reduced interest expense from the refinancing.
He said the refinancing was accomplished at interest rates "significantly lower than recent years."