MGM Mirage May Get Secured Loan From Colony Capital - Source
07 Abril 2009 - 6:23PM
Dow Jones News
Embattled casino operator MGM Mirage (MGM) is involved in
discussions with Colony Capital LLC about possibly receiving a
secured loan from the private-equity firm, a person familiar with
the matter said Tuesday.
Colony is in talks about leading such an investment with other
investors that could include using some of MGM Mirage's casinos as
collateral, the source said, adding that a deal isn't set in
concrete and may yet fail to materialize.
A loan could go a long way in helping MGM Mirage refinance its
hefty debt load as the Las Vegas-based company struggles to remain
in compliance with its debt covenants.
A MGM Mirage spokesperson wasn't immediately available to
comment.
The company reportedly hired Morgan Stanley recently to handle
the potential sales of MGM Grand Detroit and the Beau Rivage casino
in Biloxi, Miss., amid intense pressure to raise cash to meet
looming obligations on its $13.5 billion in debt.
MGM Mirage is also trying to salvage City Center, a $8.6 billion
project in Las Vegas jointly owned by MGM Mirage and Dubai World
that still needs billions of dollars in funding.
-By A.D. Pruitt, Dow Jones Newswires; 201-938-2269;
angela.pruitt@dowjones.com
(Tamara Audi contributed to this report.)