MGM Resorts International said Friday that Barclays Capital Inc., the underwriter behind the hotelier's recent public offering, has exercised its option to buy more than 6 million shares of additional stock, which allowed MGM Resorts to raise $1.1 billion.
MGM Resorts plans to use these proceeds to pay down debt whose maturity date cannot be extended and extend the maturity date for $3.6 million in debt to 2014. The company said that thanks to the proceeds of this offering, it now has enough liquidity to address all of its other debt maturity dates into 2013.
MGM Resorts made a public offering of 40.9 million shares of its stock, along with 27.8 million shares from an investor, Tracinda Corp. The offering closed on Oct. 18.
For the sake of covering excess demand, Barclays had the option to buy up to 6.2 million additional shares from MGM Resorts, along with 4.2 million additional shares from Tracinda. Barclays fully exercised this option, which pushed MGM Resorts' net proceeds from the offering past the billion-dollar mark.
Shares of MGM Resorts International fell 38 cents, or 2.9 percent, to $12.90 in afternoon trading.
(This version corrects size of acquisition in first graph)