Capricorn Metals (TG:MGM)
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Malaysian casino operator Genting Bhd. (3182.KU) Thursday said it has subscribed for $100 million of MGM Mirage (MGM) bonds to secure better returns for its cash.

In separate filings to the stock exchange, Genting said its unit Resorts World Bhd. (4715.KU) subscribed for $50 million of MGM notes and another unit Genting Overseas Holdings took on the same amount.

The notes will be secured against high-quality gaming and entertainment assets in Las Vegas, thereby giving downside risk protection to the investment, it added.

" With yield returns in excess of 10%, the investment generates an attractive return compared to what is currently attainable in the money markets or in other secured investments regionally," Genting said.

Half of the notes pay annual interest of 10.375% and are due in May 2014, while the remaining balance carries a coupon rate of 11.125% and matures in November 2017, Genting said.

Genting added that the notes were offered by MGM as part of a placement of $1.5 billion in aggregate principal amount, and the proceeds will be used by MGM to partially settle some of its outstanding debts and for general corporate purposes.

-By Elffie Chew, Dow Jones Newswires; (603) 2026 1233; elffie.chew@dowjones.com