MGM Resorts International to receive US$125 million from MGM Macau

MGM Resorts International announced that it expects to receive approximately US$125 million (MOP1 billion) from MGM Macau during this month. The amount represents a partial repayment of principal and accrued interest on the company’s interest and non-interest bearing notes to MGM Macau. MGM Macau is expected to earn operating income of US$61 million in the third quarter of 2010 – including depreciation expense of US$22 million – compared to operating income of US$50 million in the 2009 third quarter – which included depreciation expense of US$23 million, MGM Resorts International said. MGM Resorts International also announced it recently received an offer for its half-interest in the Borgata Hotel Casino & Spa in Atlantic City, bringing proceeds of about US$250 million. The company was obliged to sell its share in the property after the New Jersey regulators found MGM Resorts International’s partner in the MGM Macau, businesswoman Pansy Ho Chiu King to be “unsuitable”. MGM Resorts International also announced it plans to raise more than US$500 million selling stock. The company said it plans to use the proceeds primarily to repay some of its almost US$13 billion in debt.