Friday, Feb. 27, 2009 | 2:28 p.m.
Casino operator MGM Mirage said Friday it wants to tap $842 million of its $4.5 billion senior revolving credit agreement due to capital market and economic volatility.
MGM Mirage and others in the casino sector have struggled as consumers tighten their discretionary spending due to the ongoing housing downturn, increasing food costs, diminishing credit and unemployment concerns. Some casino operators have had to cut jobs and cancel or suspend development projects as they look to control costs.
In a filing with the Securities and Exchange Commission, Las Vegas-based MGM Mirage said its borrowing request was fully funded as of Thursday.
The company plans to use the money for general corporate purposes.
MGM's stock shed 33 cents, or 7.4 percent, to $4.12 in morning trading while the broader market fell, as investors second-guess Citigroup Inc.'s plans to turn over a big piece of itself to the government.