Dallas, Texas 12/18/2013 (FINANCIALSTRENDS) – MGM Resorts International (NYSE:MGM) is a $10.89 billion market capped firm which is engaged in the operations of resorts and casinos. The mid capped resorts operator has announced on Monday that it is trying to raise $500 million in the form of senior notes which will attract interest rate of 5.25 percent and bear a maturity date of 2020. The public offers of these secure notes are expected to close on December 19.
Form the proceeds of this notes issue exercise, the firm plans to retire ahead of schedule, part of its outstanding notes which are offering interest of 5.875 percent and were originally slated to mature early next year. The newly issued note are being guaranteed by MGM Resorts International (NYSE:MGM) and its subsidiaries. A consortium of banks led by Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc. and J.P. Morgan Securities LLC has been slotted as joint book-running managers for this deal.
MGM Resorts International (NYSE:MGM) stock shares were trading at $22.22 per share when trading closed for the day yesterday. At these levels, the stock is trading at price points which are 2.21 percent above its prior 52 week high price points. Over the past one year the stock has been range bound between $11.27 and $21.74 per share. In the past one year, the stock has managed to post a significant 95 percent increase in its valuation which has petered down to 14 percent growth in the past one month. In the past one year the stock has managed to post net loss of $1.3 billion from annual sales turnover of $9.59 billion. Analysts have set a price target of $22.88 and investors in the stock would be hoping that they would be able to realize these gains in short order.