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The Zacks Analyst Blog Highlights: Capri Casinos, MGM Resorts International, 500.com, Melco Crown Entertainment and Las Vegas Sands - Press Releases

Zacks Equity Research

For Immediate Release


Chicago, IL – April 14, 2015 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Isle of Capri Casinos, Inc. (ISLE-Free Report), MGM Resorts International (MGM-Free Report), 500.com Limited (WBAI-Free Report), Melco Crown Entertainment Limited (MPEL-Free Report) and Las Vegas Sands Corp. (LVS-Free Report).


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Here are highlights from Monday’s Analyst Blog:      


Gambling Stock Roundup


Last week, a couple of companies in the gambling industry were busy managing their balance sheet. While Isle of Capri Casinos, Inc. (ISLE-Free Report) issued and priced senior notes, MGM Resorts International’s (MGM-Free Report) subsidiaries announced special dividend and expanded their credit facilities. In one other development, 500.com Limited (WBAI-Free Report) suspended all of its online lottery sales for the time being, which is expected to negatively impact its revenues.

Meanwhile, companies like Melco Crown Entertainment Limited (MPEL-Free Report) and Las Vegas Sands Corp. (LVS-Free Report) that have been bearing the brunt of the Macau slump for long had something to cheer about.  Per reports, the Sino-American Gaming Investment Group and Macau Resources Group Ltd are in talks to make investments in Philippines, which could possibly open up new profit avenues for these gambling companies. (Read last development: Gambling Stock Round Up for Apr 6, 2015).

Recap of the Week’s Important Stories:

1.    Isle of Capri Casinos priced an additional $150 million of its 5.875% senior notes due 2021. The company had issued senior notes due 2021 worth $350.0 million in Mar 2013. The additional 2021 notes will be issued at an offer price of 102.00% plus accrued and unpaid interest from and including Mar 15, 2015 to but excluding Apr 14, 2015. Subject to customary closing conditions, the offering is scheduled to close on Apr 14, 2015.

Simultaneously, the company commenced a cash tender offer for any and all of its outstanding 7.75% senior notes due 2019 that will expire on Apr 13, 2015. The company intends to use the net proceeds from the private offering of notes due 2021 to fund 7.75% senior notes due 2019 pursuant to the company's tender offer, redemption of any 2019 notes that remain outstanding following consummation of the tender offer and payment of related fees and expenses.

2.    MGM Resorts and Infinity World Development Corp. announced a special dividend and the adoption of an annual distribution policy by CityCenter Holdings, LLC. CityCenter – 50% owned by MGM resorts – approved a $400.0 million special dividend that will be paid on or about Apr 30, 2015.  The owners will each receive $200 million, representing their pro rata share. 

Additionally, CityCenter adopted a regular dividend policy per which it will make annual distributions of up to 35% of excess cash flow. However, it is subject to approval by the board of directors of CityCenter. CityCenter is an urban mixed-use development resort on the Las Vegas Strip.

In one other development, MGM China Holdings Limited, a 51%-owned subsidiary of MGM Resorts has agreed to amend and restate its Hong Kong Dollar denominated senior credit facilities agreement, thereby expanding the facility by $1 billion and extending its maturity by 18 months.

The proceeds from the amended and restated facilities will be used for the refinancing of facilities made available under the existing credit facilities of MGM Grand Paradise, S.A. and any proper corporate purposes of the company and its subsidiaries including the development of MGM Cotai.

3.    500.com Limited stated that it was one of the two entities that received approval from the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. The statement came in response to a public announcement made by eight competent government authorities in China. The announcement called for some restrictions and rules related to online lottery sales.

500.com Limited believes that the public announcement is a fruitful step by the authorities to create a healthy lottery market in China. Given the objective, 500.com Limited decided to voluntarily and temporarily suspend all of its online lottery sales services beginning Apr 4, 2015.  The company does not expect to generate any revenues during the temporary suspension period. (Read: 500.com Shares Unmoved by Online Lottery Sales Suspension)

4.    Sino-American Gaming Investment Group and Macau Resources Group Ltd are reportedly in talks to spend $1.0 billion for developing two new casino resorts in Philippines. Macau Resources Group is a New York-based gaming operator. The Sino-American Gaming Investment Group is a U.S. investment company controlled by Denver-based consultant RiskWise Group.

Share price of companies like Las Vegas Sands and Melco Crown that have been suffering as a result of the slowdown in Macau over the past 10 months and are looking for new ways to boost profits went up. These companies possibly moved up on prospects of new sales avenues. (Read: Is Philippines the Next Market for Macau Casinos?)



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ISLE OF CAPRI (ISLE): Free Stock Analysis Report
MGM RESORTS INT (MGM): Free Stock Analysis Report
500.COM LTD-A (WBAI): Free Stock Analysis Report
MELCO CROWN ENT (MPEL): Free Stock Analysis Report
LAS VEGAS SANDS (LVS): Free Stock Analysis Report
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