Friday, Feb. 26, 2010 | 8:44 a.m.
MGM Mirage today said lenders representing about $4.37 billion of its debt have agreed to new terms giving the hotel-casino operator more time to pay off that debt.
Certain lenders in the $5.55 billion senior bank credit facility agreed to extend the maturity of a portion of the credit facility from October 2011 to February 2014.
This will give MGM Mirage some breathing room as it better aligns projected cash flow with debt-payment obligations.
"This amendment underscores the tremendous confidence our bank group has in our company," Jim Murren, chairman and CEO, said in a statement. "The transaction provides us with additional long-term financial flexibility and reflects our continued commitment to strengthen our financial position."
Terms of the deal include:
--MGM Mirage will make a 20 percent reduction in credit exposures to lenders that agreed to extend their commitments, other than lenders that waived the reduction.
--Re-working of the senior credit facility so that approximately $1.4 billion of revolving loans and commitments will be effectively converted into term loans, leaving a revolving credit commitment of $2 billion, approximately $300 million of which will mature in October 2011
--MGM Mirage will repay the approximately $1.2 billion owed to lenders that did not agree to extend their commitments by October 2011
--MGM Mirage will pay extension fees and a one percentage point increase in the interest rate to the extending lenders
--MGM can issue unsecured debt and equity to refinance interim maturities.
MGM Grand, a AAA Four Diamond resort, offers 5,044 rooms and suites.
MGM Grand features KÀ by Cirque du Soleil; Brad Garrett’s Comedy Club; and world-class entertainment at the Grand Garden Arena and Hollywood Theatre.
The resort offers signature restaurants by celebrity chefs including Tom Colicchio’s Craftsteak, Emeril Lagasse’s New Orleans Fish House, Wolfgang Puck’s Bar & Grill and Michelin three star and Forbes Five Star restaurant, Joël Robuchon.
As part of its ongoing “Grand Renovation,” MGM Grand has remodeled all rooms and suites in its main tower and is adding several new experiences to its lineup including Hakkasan Las Vegas Restaurant and Nightclub, a new upscale dining/nightlife concept (coming in April 2013).
MGM Grand also features a state-of-the-art, non-smoking conference center, the Grand Spa, Cristophe Salon, "CSI: The Experience" and an inviting pool complex featuring the tantalizing daylife of Wet Republic.
Upscale accommodations include The Mansion, an exclusive hotel within the hotel; the luxurious two-story SKYLOFTS at MGM Grand; and The Signature at MGM Grand, a luxury all-suite, non-gaming hotel located adjacent to the main resort.