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February 18, 2019

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Lenders give MGM Mirage more time to pay debt

MGM Mirage properties

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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.

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