Deutsche Bank Reiterates Buy on MGM Resorts International
Deutsche Bank reiterates its Buy rating on MGM Resorts International (NYSE: MGM) as the company announces credit facilities that should continue its deleveraging story.
Deutsche Bank says, "This morning (2/13), MGM announced a private offering by CityCenter of $240 million in senior secured first lien notes. The notes will be additional notes of the $900 million 7.625% senior secured first lien notes due 2016. CityCenter intends to use the net proceeds of the offering, along with existing cash (~$172 mm at 4Q11 end), to repay $300 million of the outstanding balance of its $375 mm senior credit facility. Additionally, in conjunction with its private placement announcement, MGM announced preliminary results for CityCenter for the 4Q 2011."
MGM closed at $14.63 a share on Friday.
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