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Resort operator sells $1.23 billion in stock

Monday, April 17, 2000 | 10:39 a.m.

MGM Grand Inc. of Las Vegas today announced the sale of 46.5 million shares of stock in a private placement at $26.50 per share, raising $1.23 billion. Proceeds from the sale will be used to finance the $6.7 billion acquisition of Mirage Resorts Inc.

The sale represents a 41.5 percent increase in the amount of outstanding MGM Grand stock. With completion of the sale, MGM Grand will have 158.33 million shares outstanding.

Tracinda Corp., the holding company owned by Los Angeles billionaire Kirk Kerkorian, purchased 23 million shares, or $609.5 million in stock, representing 49.5 percent of the placement. The equity sale will reduce Kerkorian's stake in MGM Grand from 64.4 percent to 60 percent.

The remainder of the shares were purchased by a "limited number" of unidentified financial institutions.

Last week, MGM Grand announced it had closed on $4.3 billion in credit facilities that will also be used to finance the Mirage Resorts buyout.

In late morning trading today, MGM Grand was at $26, down $1.

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