MGM GRAND ANNOUNCES COMPLETION OF DEBT OFFERING
MGM GRAND ANNOUNCES COMPLETION OF DEBT OFFERING BEVERLY HILLS, Calif., May 6 /PRNewswire/ -- MGM Grand, Inc.
(NYSE: MGG) announced today that the registration statement for its public offering of $220,000,000 of seven year 11-3/4 percent first mortgage notes and $253,000,000 10 year 12 percent first mortgage notes (assuming full exercise of the underwriters' overallotment option for $20 million of the 11-3/4 percent notes and $23 million of the 12 percent notes) has become effective. Bear, Stearns & Co. Inc., Donaldson, Lufkin & Jenrette Securities Corporation, BT Securities Corporation and Oppenheimer & Co., Inc. acted as underwriters for the sale of the first mortgage notes, which will be issued by MGM Grand Hotel Finance Corp. The notes will be listed on the New York Stock Exchange under the symbols "MGG-99" and "MGG-02."
Bob Maxey, president and CEO, commenting on the sale, stated, "This public debt issue, when coupled with the previously completed $200 million common stock rights offering, an additional $100 million in equity which is assured by an unconditional letter of credit, a $60 million operating line from Bank of America, and $50 million in capital leases, completes the financing necessary to build and open the MGM Grand Hotel, Casino & Theme Park. This project includes the largest hotel-casino in the world, the first theme park in Las Vegas and a 15,000-seat special events arena called MGM Grand Garden." Fred Benninger, chairman of MGM Grand, reported that "the project will be built with fixed price, performance guaranteed contracts, approximately 40 percent of which are in hand. Construction to date is on time and under budget." The MGM Grand is scheduled to open in early 1994. -0- 5/6/92 /CONTACT: Eugene Shutler of MGM Grand, 310-271-3793, or Shari Nakakura, 213-629-4974, for MGM Grand/ (MGG) CO: MGM Grand, Inc. ST: California, Nevada IN: CNO SU: OFR
LR -- NY084 -- 7264 05/06/92 16:27 EDT
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|Date:||May 6, 1992|
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