MGM Resorts Looking to Raise New Debt to Cover Springfield Casino
MGM Resorts International is now looking to raise funds for the new debt towards their purchase of the Springfield Casino in the amount of $1 billion for the help of paying for the casino project in Springfield Massachusetts. If their $11.7 billion debt wasn’t enough, the new debt wouldn’t come due until 2023, giving them plenty of time to generate revenues to cover it.
MGM reported that all proceeds coming from the debt sale will be used to repay the already existing $1 billion debt that has to be paid by next year. The hotel and resort in Springfield is costing around $800 million to complete along with the other two locations on the Cotai Strip in Macau and National Harbor in Maryland. The completion of all three new establishments is going to create a substantial amount of further debts, but MGM’s US projects increases the short term liquidity risk that will make their credit file look more enriched in longer terms.
MGM hasn’t went into details about the debt offering. They have commented very brief on the matter but analysts are viewing the situation as a debt maturity to help eliminate 2015 obligations and is being looked at as a positive development phase of the company’s needs.
This past Monday, MGM stepped closer to seeing the construct of the $800 million casino project in Springfield with an $85 million licensing fee to the state.
“Today’s payment of the licensing fee is another important milestone for MGM Springfield, said Carole Brennan,” MGM Springfield spokeswoman. “This money will help assure that the economic benefits sought by the gaming law come to fruition. We are delighted to make this strong commitment to the commonwealth, and to move forward with Springfield’s comeback story.”
Payment was proceeded by a statewide ballot vote on Nov. 4, that upheld the state’s casino law.