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MGM, Wynn to take on $1 billion debt for new projects

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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.

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.

 

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