MGM Mirage extends debt exchange
Strip casino giant MGM Mirage extended the early participation date for a previously announced debt exchange offer.
The company said Friday the date was extended to Sept. 24 from yesterday.
Under the terms of the offer, eligible bond holders can exchange a portion of $782 million in 8.5 percent senior notes, due 2010, for up to $500 million in 10 percent senior notes, due 2016.
Because the early participation date happens at the same time of the exchange offer's expiration date, MGM Mirage will exchange $1,000 in existing notes in the exchange offer for total consideration of $1,175 in new notes.
Only qualified institutional buyers and certain non-U.S. investors located outside the U.S. can participate in the exchange offer.
Casino operators carrying large debt were hurt by the recession, such as MGM Mirage, Harrah’s Entertainment, Station Casinos and Las Vegas Sands Corp. MGM Mirage struggled to remain in compliance with its debt covenants and considered selling off properties to meet obligations.
The company, which has some $13 billion in long-term debt, said in May it would pay back $825.6 million in debt under its senior credit facility after a stock and bond offering. Those offerings led the company to remove a bankruptcy concern statement from a filing in June, saying there is no longer "substantial doubt" about its ability to remain operational.
