MGM Macau IPO Slated for Q3: Report
NEW YORK (
) --
MGM Mirage's
(MGM) - Get Report
initial public offering of its Macau assets will be complete in the third quarter, according to reports.
MGM has finally selected lead underwriters,
Bloomberg
reported on Thursday, although the news service did not reveal names.
The casino operator plans to sell $850 million in secured bonds between now and June, Bloomberg reported, citing CEO Jim Murren. Creditors approved the move last week under amendments and an extension of part of MGM Mirage's bank facility.
MGM is following the lead of rivals
Las Vegas Sands
(LVS) - Get Report
and
Wynn Resorts
(WYNN) - Get Report
, which completed IPOs of their Macau assets last year.
Still, the deal, which will strengthen its partnership with Pansy Ho, will likely put a strain on its operations in Atlantic City. New Jersey is opposed to MGM's relationship with Ho, whose family is allegedly connected to Chinese organized crime.
New Jersey regulators want to hold a hearing about the relationship, but MGM would prefer to remove itself from the matter and is currently looking to divest its 50% stake in the Borgata.
It only makes sense that MGM would opt to prioritize Macau over Atlantic City. The Chinese gambling hub reported a 70% surge in gaming revenue in February to $1.68 billion.
-- Reported by Jeanine Poggi in New York.
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