MGM Resorts to Sell Shares, Book Charge on Borgata Offer
MGM Resorts International said it is offering 40.9 million shares of its common stock and that its largest stockholder, Tracinda Corp., is offering 27.8 million shares of its common stock. MGM will use proceeds for general corporate purposes, including repaying debt.
MGM also said it expects to receive $125 million from its joint venture in Macau this month, and it received an offer for its 50 percent interest in Borgata Hotel Casino & Spa that equates to slightly more than $250 million and will result in MGM booking a third-quarter pre-tax impairment charge of about $128 million. MGM submitted the offer to Boyd Gaming Corp., which owns the other 50 percent interest and has the right to match the offer.
MGM said it expects a third-quarter loss of 72 cents a share.
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