LAS VEGAS, Sept. 12, 2017 /PRNewswire/ -- MGM Resorts
International (the "Company" or "MGM Resorts") (NYSE:MGM) today
announced that it will purchase 10 million shares of its common
stock from Tracinda Corporation ("Tracinda") at $32.75 per share, a 1% discount to the market
closing price on September 11, 2017,
for a total aggregate amount of $327.5
million. Following the purchase, Tracinda will own
approximately 47.1 million shares, or approximately 8.3% of the
Company's outstanding common stock.
"We believe today's announcement represents a prudent and
efficient way of buying back a considerable amount of our stock at
an attractive price," Jim Murren,
Chairman and CEO of MGM Resorts, "This transaction remains
consistent with our stated long-term strategy of utilizing our cash
to maximize value for our shareholders while maintaining a strong
financial position."
The repurchase is expected to occur by September 13, 2017 and will be made pursuant to
the terms of the Company's recently announced $1.0 billion stock repurchase program, of which
$672.5 million will remain following
the transaction.
The Company intends to purchase the shares using borrowings
under its senior credit facility, which it expects to repay with
the proceeds from the consummation of the recently announced
transaction to sell the real estate assets associated with the MGM
National Harbor casino resort. The MGM National Harbor transaction
is expected to close in the fourth quarter of 2017, subject to
regulatory approvals and other customary closing conditions.
As of August 3, 2017, there were
approximately 575.2 million shares of the Company's common stock
outstanding.
ABOUT MGM RESORTS INTERNATIONAL
MGM Resorts International (NYSE: MGM) is an S&P
500® global entertainment company with national and
international locations featuring best-in-class hotels and casinos,
state-of-the-art meetings and conference spaces, incredible live
and theatrical entertainment experiences, and an extensive array of
restaurant, nightlife and retail offerings. MGM Resorts creates
immersive, iconic experiences through its suite of Las
Vegas-inspired brands. The MGM Resorts portfolio encompasses 27
unique hotel offerings including some of the most recognizable
resort brands in the industry. The company is expanding throughout
the U.S. and around the world, developing MGM Springfield
in Massachusetts and MGM COTAI in Macau, and
debuting the first international Bellagio branded hotel
in Shanghai. The 77,000 global employees of MGM Resorts are
proud of their company for being recognized as one of FORTUNE®
Magazine's World's Most Admired Companies®. For more information
visit us at www.mgmresorts.com.
Statements in this release that are not historical facts are
"forward-looking" statements and "safe harbor statements" within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve risks and/or uncertainties, including those described
in the Company's public filings with the SEC. The Company has based
forward-looking statements on management's current expectations and
assumptions and not on historical facts. Examples of these
statements include, but are not limited to, the Company's capital
plan, the closing of the stock repurchase and the MGM National
Harbor acquisition and any benefits expected to be received as a
result of the acquisition. These forward-looking statements involve
a number of risks and uncertainties. Among the important factors
that could cause actual results to differ materially from those
indicated in such forward-looking statements include effects of
economic conditions and market conditions in the markets in which
the Company operates and competition with other destination travel
locations throughout the United States and the world, the
design, timing and costs of expansion projects, risks relating to
international operations, permits, licenses, financings, approvals
and other contingencies in connection with growth in new or
existing jurisdictions and additional risks and uncertainties
described in the Company's Form 10-K, Form 10-Q and Form 8-K
reports (including all amendments to those reports). In providing
forward-looking statements, the Company is not undertaking any duty
or obligation to update these statements publicly as a result of
new information, future events or otherwise, except as required by
law. If the Company updates one or more forward-looking statements,
no inference should be drawn that it will make additional updates
with respect to those other forward-looking statements.
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SOURCE MGM Resorts International