Kerkorian’s Tracinda Group, which currently holds about 53.8 percent of MGM’s stock, plans to buy approximately 8.1 million shares from underwriters. The modified loan agreement also states that MGM will use 50 percent of proceeds from future asset sales to lower its term loan and the revolving components of its senior credit line, subject to requirements of other outstanding debt. The amendment allows MGM to permanently waive any potential default from the inclusion of the term “going concern” in its 20 financials.Ī going-concern qualification refers to the auditor’s assessment of a company’s ability to continue to operate for the foreseeable future. ![]() The new credit agreement – which was amended for a sixth time – gives the company a little more breathing room. She rates the stock “Underperform” with $7 price target, which would represent a more than 40 percent drop from Tuesday’s closing price of $12.40.
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