MGM MIRAGE Announces Launch of Credit Facility Amendment and Extension Transaction
08 Fevereiro 2010 - 11:30AM
PR Newswire (US)
Company Provides Status of New Jersey Discussions LAS VEGAS, Feb. 8
/PRNewswire-FirstCall/ -- MGM MIRAGE (NYSE:MGM) today announced
that it is seeking amendments to its aggregate $5.55 billion of
senior credit facilities which would extend the maturity of a
substantial portion of those credit facilities from October 3, 2011
to February 21, 2014. The Company has asked its lenders to provide
their final approvals of the transaction by February 24, 2010.
Lenders approving the proposed amendments would receive prepayments
aggregating not less than 20% of their outstanding loans and
lending commitments, as well as certain additional interest and
fees. The prepayments would increase by 1% for each full percentage
by which lender participation in the transaction exceeds 80%, to a
maximum of 25%. "We are pleased to have received strong initial
support from our leading lenders for this proposed transaction, and
are now working with the rest of our lender syndicate to achieve
maximum participation," said Dan D'Arrigo, Executive Vice President
and Chief Financial Officer of MGM MIRAGE. "These amendments would
extend a significant portion of our credit facilities, and enhance
our debt maturity profile." Lenders approving the extension would
receive an increase of 100 basis points to their interest rates, as
well as amendment and extension fees totaling 75 basis points times
their reduced exposures. The credit facilities would also be
re-tranched in a manner which would result in conversion of $1.4
billion of revolving loans and commitments into term loans. The
transaction would include covenant and other amendments, and would
permit MGM MIRAGE to issue additional secured indebtedness as
permitted under the Company's public debt indentures. In connection
with the proposed amendment, MGM MIRAGE also provided an update
concerning its discussions with the New Jersey Division of Gaming
Enforcement ("DGE") about the DGE's May 2009 recommendation to the
New Jersey Casino Control Commission ("CCC") that MGM MIRAGE's
joint venture partner in Macau be found unsuitable. MGM MIRAGE
stated that it is currently involved in constructive settlement
discussions with the DGE, which have centered on the Company
placing its 50% ownership interest in the Borgata Hotel Casino
& Spa and related leased land in Atlantic City into a
divestiture trust for which MGM MIRAGE would be the sole economic
beneficiary. While no definitive settlement with the DGE has been
reached, the Company has asked its lenders to consent to the trust
arrangement. Any settlement is subject to both DGE and CCC
approval. "We disagree with the New Jersey Division of Gaming
Enforcement's recommendation to the Casino Control Commission
concerning our Macau partner, but believe pursuing a settlement
with the DGE represents the best course of action for our company
and its shareholders," said Jim Murren, Chairman and Chief
Executive Officer. "We would like to put this matter behind us and
move forward with the compelling growth opportunities we have in
Macau." MGM MIRAGE (NYSE:MGM), one of the world's leading and most
respected companies with significant holdings in gaming,
hospitality and entertainment, owns and operates 15 properties
located in Nevada, Mississippi and Michigan, and has 50%
investments in five other properties in Nevada, New Jersey,
Illinois and Macau. One of those investments - CityCenter - is also
managed by MGM MIRAGE. CityCenter, an unprecedented urban
metropolis on the Las Vegas Strip with Gold and Silver LEED®
certifications, is a joint venture between MGM MIRAGE and Infinity
World Development Corp, a subsidiary of Dubai World. CityCenter
features ARIA Resort & Casino, Vdara Hotel & Spa, Mandarin
Oriental, Las Vegas; Veer Towers, and Crystals retail and
entertainment district. MGM MIRAGE Hospitality has entered into
management agreements for casino and non-casino resorts throughout
the world. MGM MIRAGE supports responsible gaming and has
implemented the American Gaming Association's Code of Conduct for
Responsible Gaming at its properties. MGM MIRAGE has received
numerous awards and recognitions for its industry-leading Diversity
Initiative and its community philanthropy programs. For more
information about MGM MIRAGE, please visit the company's Web site
at http://www.mgmmirage.com/. Statements in this release which are
not historical facts are "forward looking" statements and "safe
harbor statements" under the Private Securities Litigation Reform
Act of 1995 that involve risks and/or uncertainties, including
risks and/or uncertainties as described in the company's public
filings with the Securities and Exchange Commission. DATASOURCE:
MGM MIRAGE CONTACT: Investment Community, Dan D'Arrigo, Executive
Vice President & Chief Financial Officer, +1-702-693-8895, or
News Media, Alan M. Feldman, Senior Vice President Public Affairs,
+1-702-650-6947 Web Site: http://www.mgmmirage.com/
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