MGM Resorts International (MGM) said CityCenter Holdings LLC, its joint-venture with Dubai World that owns an eponymous casino complex in Las Vegas, plans to offer $1.1 billion in notes through a private placement.
MGM's shares dipped 2 cents to $16.33 in recent premarket trading.
The move is the latest by the owners of the $8.7 billion project to fix CityCenter's financial problems. They plan to use proceeds from the offering to reduce the balance outstanding under the project's credit facility.
MGM itself has raised capital lately through stock and bond offerings, leading the three major rating agencies to raise their outlooks on the casino operator last year. It has struggled amid steep drops in tourism and consumer spending in its home town, Las Vegas. A heavy debt load taken on to fund expansion efforts has also weighed on the bottom line.
Meanwhile, Dubai World has been seeking to get back on a growth path after securing creditor approval to restructure almost $25 billion worth of debt.
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