MGM Mirage on Wednesday said it will try to raise $2.5 billion through stock and bond offerings, part of a series of significant steps meant to stabilize the casino company.
The moves come as the Las Vegas company, controlled by billionaire investor Kirk Kerkorian, works to pay down $14 billion in looming debt while contending with shrinking revenue as consumers and corporations cut spending
The moves come as the Las Vegas company, controlled by billionaire investor Kirk Kerkorian, works to pay down $14 billion in looming debt while contending with shrinking revenue as consumers and corporations cut spending
Casino companies accustomed to lofty profits in the last few years are now battling to stay afloat. Station Casinos Inc. has warned it could file for bankruptcy protection by the end of this week, and privately owned Harrah’s Entertainment Inc. is reining in expansion plans and working to reduce debt that recently stood at more than $20 billion.
MGM Mirage has been in a particularly precarious position. On top of paying for upkeep and staff at its resorts, the company has also been funding the $8.5 billion City Center project, with a monthly construction bill of about $200 million. Until recently, MGM Mirage had been locked in a legal dispute with Dubai World, its co-owner on the City Center project. The two parties recently resolved their differences, which relieved some pressure on MGM Mirage
MGM Mirage has been in a particularly precarious position. On top of paying for upkeep and staff at its resorts, the company has also been funding the $8.5 billion City Center project, with a monthly construction bill of about $200 million. Until recently, MGM Mirage had been locked in a legal dispute with Dubai World, its co-owner on the City Center project. The two parties recently resolved their differences, which relieved some pressure on MGM Mirage