Cash is coming at just the right time for MGM Resorts
A new financing deal at Borgata pays MGM and Boyd Gaming
The next step is selling MGM's half of the property, which might be a little trickier. MGM's sale of its half of Borgata comes with a first right of refusal from Boyd, giving it leverage in sale negotiations. Then there's also the condition that other gaming companies are in. Harrah's is struggling with a huge debt load. Las Vegas Sands
Nevertheless, investors should be happy about the cash infusion for MGM. My biggest concern is the $13 billion in debt hanging over the company. If the Borgata sale goes through and a Macau IPO happens later this year, MGM may not be in such a bad financial position after all.
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