On May 14, the company announced that it had completed the billion dollar public stock offering which is part of its attempt to raise $2.5 billion in capital in total. The company is doing whatever it can to pay down its huge $14 billion debt. MGM intends to use part of the stock offering proceeds to pay $750 million and to buy back some of its debt.
The underwriters have a 30 day option to buy up to 21.5 million more shares. MGM Mirage has a total of about 276.6 million shares outstanding as of May 5 as reported in the SEC filing. The company also put up a private offering consisting of $1.5 billion of senior secured notes which closed May 19.
The company has also announced that it has amended its credit agreement yet again. Under the new agreement, MGM needs to raise the needed cash but does allow the company to avoid defaulting even in the face of auditors questions about their continuing operative abilities.