Friday, September 11, 2009
MGM buys back debt
MGM has $782 million of debt due in 2010, and MGM is offering those debt-holders notes that mature in 2016, $1,175 for each $1,000 debt.
In today's WSJ, they had this to say:
In May, it said it would pay back $825.6 million in debt under its senior credit facility after a stock and bond offering. Those offerings led the company to remove a bankruptcy concern statement from a filing in June, saying there is no longer "substantial doubt" about its ability to remain operational.
Amazing that investors only appreciate what these offerings do to the equity holder, but only after the stock starts moving higher!
Posted by Palmoni at 8:47 AM