MGM Mirage halts debt exchange
MGM Mirage halted a debt exchange today when not enough of the company’s debt holders were willing to accept the deal.
The Las Vegas-based casino operator offered debt holders to exchange up to $782 million in 8.5 percent senior notes due in 2010 for up to $500 million in 10 percent senior notes due in 2016.
Only about $9.1 million of the notes had been tendered as of Wednesday, MGM Mirage said in brief statement this morning. The minimum amount required for the offer was $25 million. Notes validly tendered and not withdrawn will be returned to their holders, the company said.
MGM Mirage announced the exchange offer in late August. The company extended the offer’s expiration date last month.
Analysts saw the exchange as a way for MGM Mirage to refinance some of its $12.3 billion in long-term debt as of June 30.
