March 3 (Bloomberg) — MGM Mirage, the biggest casino owner on the Las Vegas Strip, will sell shares in its Macau, China, venture with Pansy Ho in the third quarter, Chief Executive Officer Jim Murren said.
“I’m confident we’ll get the IPO done in the third quarter, probably in the August, September time frame,” Murren said today in an interview with Bloomberg Television. The venture has selected lead underwriters, said Murren, who declined to name them.
The company follows Las Vegas-based rivals Wynn Resorts Ltd. and Las Vegas Sands Corp., which raised funds by selling stakes in their operations in Macau, the world’s biggest gambling market. Gross revenue at Macau’s casinos increased 10 percent to a record of more than 119 billion patacas ($14.9 billion) in 2009, according to government data.
MGM Mirage plans to sell $850 million in secured bonds between now and June, Murren said. Creditors approved the move last week under amendments and an extension of part of MGM Mirage’s bank facility.
“We can work on our time frame,” Murren said. “Rates are fairly attractive right now and that will push out another big part of our debt into 10-year paper, plus will give us more flexibility in the near term.”
MGM Mirage rose 16 cents, or 1.5 percent, to $10.85 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have gained 19 percent this year.
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