New York - MGM Resorts International formerly MGM Mirage has decided to issue common shares to pay down its bulging debt and for other corporate purposes. It is expected that 70 million shares will be issued for approximately 1 billion dollars. MGM issued convertible bonds earlier in the year which can already being dilutive to current shareholders. Allan Edwards the CEO of The Markets Are Open said "this is a good stock offering, I already priced it in, in my analysis." Edwards is referring to the fact that MGM has a substantial amount of debt, and that it was fairly obvious MGM would issue shares. Edwards continued "The question is, is this it for MGM? I don't think so." Edwards said MGM is likely to issue even more shares and debt in the future as it continues to refinance in the 5 straight quarterly losses.
MGM shares are currently down 8.74% at midday.