Genting Units Buy $100 Million MGM Mirage Bonds
21 May 2009 - 10:30AM
Dow Jones News
Malaysian casino operator Genting Bhd. (3182.KU) Thursday said
it has subscribed for $100 million of MGM Mirage (MGM) bonds to
secure better returns for its cash.
In separate filings to the stock exchange, Genting said its unit
Resorts World Bhd. (4715.KU) subscribed for $50 million of MGM
notes and another unit Genting Overseas Holdings took on the same
amount.
The notes will be secured against high-quality gaming and
entertainment assets in Las Vegas, thereby giving downside risk
protection to the investment, it added.
" With yield returns in excess of 10%, the investment generates
an attractive return compared to what is currently attainable in
the money markets or in other secured investments regionally,"
Genting said.
Half of the notes pay annual interest of 10.375% and are due in
May 2014, while the remaining balance carries a coupon rate of
11.125% and matures in November 2017, Genting said.
Genting added that the notes were offered by MGM as part of a
placement of $1.5 billion in aggregate principal amount, and the
proceeds will be used by MGM to partially settle some of its
outstanding debts and for general corporate purposes.
-By Elffie Chew, Dow Jones Newswires; (603) 2026 1233;
elffie.chew@dowjones.com