MGM Resorts Ready to Pursue Multiple New Integrated Resorts with Strong Financial Position

Global gaming powerhouse MGM Resorts International is well-positioned with ample cash reserves and balance sheet flexibility to simultaneously pursue several new integrated resort projects, including potential ventures in Thailand, the United Arab Emirates, and New York, according to CBRE Credit Research in a note released on Monday.

This assessment follows MGM’s recent announcement that it plans to issue $850 million in 6.125% unsecured notes due in 2029, with the proceeds used to refinance its existing $675 million of 5.75% notes maturing in June 2025. MGM’s next debt maturity, totaling $400 million, is scheduled for 2026.

CBRE highlighted that MGM’s lease-adjusted consolidated leverage remains relatively low at 4.3x, pro forma for the new issuance, granting the company the flexibility to undertake several significant developments in the near term. Analyst Colin Mansfield pointed out that these potential projects include opportunities in New York and internationally in Japan and the UAE.

In the report published by IAG. Mansfield also mentioned MGM’s interest in a possible project in Thailand that MGM China might oversee. Each of these developments would require multi-billion dollar investments and substantial equity contributions, but MGM could finance these through free cash flow (FCF) depending on the timing of the projects.

He added that MGM’s balance sheet also allows for partial debt financing of equity contributions if necessary, particularly if license payments and construction schedules overlap significantly.

Mansfield remarked that the additional $175 million in cash from the recent note issuance is relatively minor compared to the company’s existing liquidity.

Recently, MGM Resorts commenced land preparation for its nearly $10 billion integrated resort project in Osaka and has reportedly waived its right to withdraw from the project within the next two years.

The company has confirmed that any pursuit of a Thailand integrated resort license would be managed by its Macau subsidiary, MGM China.

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