MGM Grand, Inc. (NYSE: MGG) today
announced that it has placed 46.5 million shares of its common stock at $26.50
per share with a limited number of financial institutions and Tracinda
Corporation, its principal stockholder. The private placement raises
$1.23 billion of new equity. MGM Grand expects to utilize the proceeds in
connection with its pending acquisition of Mirage Resorts, Incorporated
“This completes the previously announced equity financing for the
acquisition,” said Jim Murren, President and Chief Financial Officer.
Tracinda is purchasing 23 million (or 49.5%) of the placement. After
giving effect to this transaction, Tracinda Corporation and Kirk Kerkorian`s
combined ownership of MGM Grand stock will be reduced from 64.4% to 60.0% of
the outstanding shares.