News for the Hospitality Executive
LAS VEGAS, Feb. 26, 2010 -- MGM MIRAGE (NYSE: MGM) today announced that lenders representing approximately $4.37 billion of the outstanding commitments under its $5.55 billion senior bank credit facility have entered into an amendment agreement (the "Amendment") which, subject to certain conditions, will extend the maturity of a portion of the credit facility from October 3, 2011 to February 21, 2014.
"This Amendment underscores the tremendous confidence our bank group has in our Company," said Jim Murren, Chairman and Chief Executive Officer of MGM MIRAGE. "The transaction provides us with additional long-term financial flexibility and reflects our continued commitment to strengthen our financial position."
Pursuant to the Amendment a restatement of the Company's senior credit facility (the "Restated Loan Agreement") will become effective upon the making of certain required prepayments and satisfaction of certain documentary conditions provided that these occur no later than June 30, 2010.
The Restated Loan Agreement will:
The Amendment permits the Company to raise up to $850 million through the issuance of secured indebtedness to fund all or a portion of the Required Prepayments. The Amendment also authorizes the Company to transfer its 50% interest in Borgata and related land holdings into a trust as contemplated by a proposed settlement that the Company continues to negotiate with the New Jersey Division of Gaming Enforcement.
"Completing this Amendment represents another important milestone as we continue to improve our balance sheet and enhance our debt maturity profile," said Dan D'Arrigo, Executive Vice President and Chief Financial Officer of MGM MIRAGE. "This is a testament to the strength of our bank relationships and the partnership we have enjoyed with our lenders over the years."
Bank of America, N.A. is the administrative agent for the Restated Loan Agreement. The joint lead arrangers for the Restated Loan Agreement are Banc of America Securities LLC, RBS Securities, Inc., J.P. Morgan Securities Inc., Barclays Capital, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Citibank North America, Inc., Sumitomo Mitsui Banking Corporation, Bank of Scotland Plc, Commerzbank, Wachovia Bank, National Association, Morgan Stanley Senior Funding, Inc. and UBS Securities LLC.
About MGM MIRAGE
Statements in this release which are not historical facts are "forward looking" statements and "safe harbor statements" under the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including risks and/or uncertainties as described in the company's public filings with the Securities and Exchange Commission.