Casino Stock Winners and Losers: MGM Mirage
Updated from 1:10 p.m. EDT
Shares of casino companies mostly traded higher Thursday, with a couple of exceptions, most notably
MGM Mirage
(MGM) - Get MGM Resorts International Report
.
MGM Mirage, which announced Thursday that it had completed a dilutive $1 billion public stock offering priced at $7 a share, closed down 10.8% to $7.76. MGM originally said it would offer 81 million shares, but instead sold 143 million.
The Las Vegas-based company, majority owned by billionaire Kirk Kerkorian, is trying to pay down some of its $14 billion in debt and improve its balance sheet. Kerkorian's Tracinda Corp. holds about 54% of MGM Mirage's stock.
MGM plans to use part of the offering's proceeds, as well as funds from a notes offering, to repay at least $750 million under its senior credit facility and buy back some of its debt and that of Mandalay Resort Group.
The stock offering's underwriters will have a 30-day option to buy up to about 21.5 million additional shares to cover any overallotments. MGM also priced a private offering of $1.5 billion senior secured notes. That offering is set to close on Tuesday.
Elsewhere among casino companies,
Wynn Resorts
(WYNN) - Get Wynn Resorts, Limited Report
finished down 0.9% to $39.44.
Las Vegas Sands
(LVS) - Get Las Vegas Sands Corp. Report
closed up 9% to $9.43.
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Boyd Gaming
(BYD) - Get Boyd Gaming Corporation Report
closed up 0.3% to $9.63.
Penn National Gaming
(PENN) - Get Penn National Gaming, Inc. Report
was up 0.4% to $30.66.
Ameristar Casinos
(ASCA)
was up 4.4% to $18.60.
Isle of Capri Casinos
(ISLE)
was up 0.2% to $11.64.
Melco Crown Entertainment
(MPEL)
was up 2.6% to $5.48.
Pinnacle Entertainment
(PNK) - Get Pinnacle Entertainment Inc Report
was up 1.5% to $11.19.
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