Public Stock Offering Completed For MGM Mirage Casino Company

MGM Mirage has had themselves one bumpy road over the past six months. One week they look as if they are going to completely collapse, and the next they look like they have solved all of their financial problems.

The latest developments for MGM occurred on Thursday when the company completed a $1 billion public stock offering. It is part of a much bigger plan for MGM in their attempt to escape financial ruin.

"MGM was the hot stock over the past couple of weeks since the CityCenter news," said observer Manuel Jones, "But now they are trying to put off paying a lot of debt and investors are starting to get scared off."

MGM's biggest project is their CityCenter project in Las Vegas. It looked as though they would not have the funding to complete the project, but they mended relations with their partners Dubai World.

Once Dubai World guaranteed to pay their half of the CityCenter project funding, it became apparent that the project would be completed. That made MGM stock rise from just over $3, all the way to over $12. In recent days, however, the stock has once again dropped.

The company currently has $14 billion in debt that majority owner Kirk Kerkorian is attempting to pay down through different avenues. Kerkorian's Tracinda Corp. is a 53.8% owner in MGM Mirage.

May 15, 2009
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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