MGM Offers $845 Million in Bonds
LAS VEGAS (
) --
MGM Mirage
(MGM) - Get Report
announced on Tuesday that it is selling up to $845 million in new bonds due in 2020 via a private offering.
The offering will be backed by its MGM Grand Las Vegas property.
The move comes as MGM struggles to combat the decline in gaming, especially in the U.S. In its fourth quarter, MGM reported a bigger-than-expected loss of $433.9 million or 98 cents a share, as revenue dropped 11% to $1.45 billion.
The company plans to use the net proceeds from the offering to repay some of its debt.
Last month, the casino operator reached an agreement with lenders to extend the deadline for paying off about $3.6 billion worth of debt to February 2014. MGM owes about $13 billion.
-- Reported by Jeanine Poggi in New York.
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