LAS VEGAS, Feb. 2, 2012 /PRNewswire/ -- MGM Resorts
International (NYSE: MGM) today announced the launch of a proposed
amendment to its aggregate $3.5 billion senior credit facilities which
will extend the maturity of consenting lenders from
February 21, 2014 to February 23,
2015. The Company has asked lenders to approve the amendment
by February16, 2012. Lenders approving the amendment will
receive 20% reductions of their existing credit
exposures.
"We have support from our leading lenders for our amendment and
extension, and we are working with the balance of our lenders to
achieve maximum participation," said Dan D'Arrigo, Executive Vice
President, Chief Financial Officer and Treasurer of the Company.
"This amendment and extension will extend a significant portion of
our credit facilities, lower our pricing and enhance our debt
maturity profile."
Extending Lenders' loans will be subject to a pricing grid that
decreases interest rates by as much as 250 basis points based upon
collateral coverage levels. In addition, the LIBOR floor on
extended loans will be reduced from 200 basis points to 100 basis
points. Lenders approving the extension will receive
amendment and extension fees totaling 50 basis points times their
reduced exposures. The transaction also includes covenant
modifications and other amendments.
Statements in this release which are not historical facts are
"forward-looking" statements and "safe harbor statements" within
the meaning of Section 21E of the U.S. Securities Exchange Act
of 1934, as amended, and other related laws 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. We have based those forward-looking
statements on management's current expectations and assumptions and
not on historical facts. Examples of these statements include,
but are not limited to, statements regarding the Company's
expectations with respect to the amend and extension transaction
for which the Company is soliciting the support and participation
of its lenders to achieve on terms proposed by the
Company. These forward-looking statements involve a number of
risks and uncertainties. Among the important factors that
could cause actual results to differ materially from those
indicated in such forward-looking statements include market
conditions for corporate debt generally, for the securities of
gaming, hospitality and entertainment companies and for the
Company's indebtedness in particular. In providing
forward-looking statements, the Company is not undertaking any duty
or obligation to update these statements publicly as a result of
new information, future events or otherwise except as required by
law.
SOURCE MGM Resorts International