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MGM Resorts Will Sell Assets to Pay Debt: CEO

To reduce some $13 billion in long-term debt, MGM Resorts International will sell assets, accumulate funds from an upcoming IPO in China and continue to generate cash at its hotels and casinos, its CEO Jim Murren told CNBC Tuesday.

“We have too much debt,” said Murren, who was speaking from the company’s City Center, a new 6,000-hotel room complex in Las Vegas. “Job 1 is to reduce the debt.”

In addition to City Center, MGM owns the Bellagio and the MGM Grand in Las Vegas.

Murren said that the Borgata, a high-end casino and hotel in Atlantic City, is among the assets MGM will sell. MGM owns a 50 percent stake in the New Jersey property.

According to Forbes, the IPO in Macau is expected to bring in some $500 million.

“We’re generating free cash now, and we expect that to increase as our business starts lifting, as our properties are starting to heal, as our economy recovers here in Las Vegas,” added Murren.

“We are lagging in the overall economy, but we are starting to recover nonetheless.”