MGM Resorts International is offering $500 million in senior notes as a means to boost its cash on hand. The plans will bring steady cash for the casino operator till 2028. It had already issued a $750 million public offerings of the senior notes at the end of April.

MGM plans on getting more cash

MGM is planning on boosting its cash reserves by offering $500 million in senior notes due in 2028. The offer comes as the company’s businesses are impacted because of the coronavirus pandemic, tumbling its financial security and affecting operations. This is not the first time that the company is issuing bonds this year post the pandemic. In April, it issued about $750 million of senior notes to improve its liquidity while businesses remained shut, and operations were stalled.

In a filing revealed Thursday, the company noted that it is committed to managing its expenses to maintain a better liquidity position. All of the properties run by MGM have been reopened as of September 30, even as many have limited occupancy and amenities. The company highlighted that it is not sure for how long its properties will have to operate like this. They have also not commented on temporarily shutting down any property.

What is the current cash position of MGM?

As of August 31, MGM had $3.6 billion in cash according to the filing. This amount does not include the cash and cash equivalents invested in MGM Growth Properties, its affiliated real estate investment trust, and its MGM China operators. The company has a 56.7% stake in MGM Growth Properties.

In recent months, the company has focused extensively on securing cash. It signed a deal with MGM Growth for cash in exchange for its existing operating partnership unit. It has already cashed in $700 million and it can get an additional $700 million in cash. These moves can help the company continue to handle the issues arising out of the pandemic.

The company expected its monthly cash spending to be around $270 million in the second quarter. Its cash flows were lower than anticipated during April and May. The company reduced expenditure by slashing its workforce and amenities.