LAS VEGAS – Two Las Vegas-based casino companies announced plans Thursday to take on at least $1 billion in debt to help pay for new casino-hotel developments in Massachusetts and cover other incidental costs.
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MGM Resorts International and Wynn Resorts Ltd. disclosed their plans in separate financial filings with federal regulators.
MGM Resorts said it planned to issue $1 billion in notes due in 2023 to pay for a variety of costs including the construction of its $800 million MGM Springfield project in Massachusetts and $1.2 billion MGM National Harbor development in Maryland, as well as pay off old debt due next year. That amount was later boosted to $1.15 billion by Thursday afternoon.
Wynn Resorts said its Wynn America subsidiary has secured a line of credit worth $375 million and a loan worth $875 million to cover some of the costs, including construction, of its $1.6 billion casino-resort near Boston.
Fitch Ratings was upbeat about MGM's announcement.
Analyst Michael Paladino said in a report to investors that the funding would bode well for the company's overall financial position as it looks to develop $5 billion worth of casino-hotel projects, including those in Maryland and Massachusetts as well as Macau.