MGM Mirage amends loan, allowing for unsecured debt, equity offerings

By Sara Rosenberg

New York, Nov. 5 - MGM Mirage amended its senior credit facility, permitting the issuance of additional unsecured debt and equity, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Proceeds from the unsecured debt will be used to refinance certain existing debt so long as the maturity of the newly issued debt is not earlier than the maturity of the debt being refinanced or six months after the date the senior credit facility is set to mature.

In addition to the refinancing debt, the company can issue up to $1 billion of other unsecured debt, provided that 50% of the net cash proceeds over $250 million be used to permanently reduce revolver and term loan borrowings on a pro rata basis.

Regarding an equity offering, 50% of the net cash proceeds over $500 million must be applied to reduce outstanding bank debt on a pro rata basis.

Bank of America is the administrative agent on the deal.

The amendment was effective on Nov. 4.

MGM Mirage is a Las Vegas-based gaming, hospitality and entertainment company.

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