MGM Mirage gets loan waiver of financial covenants

By Sara Rosenberg

New York, March 17 - MGM Mirage got a waiver from its credit facility lenders on Tuesday so that it does not need to comply with financial covenants through May 15, according to a news release.

Under the waiver, pricing on the revolver was increased by 100 basis points.

In addition, the company is prohibited from prepaying or repurchasing any debt or disposing of assets.

In connection with the waiver, the company repaid $300 million under its revolver, an amount that is not available for reborrowing without the consent of the lenders.

The company said that it intends to work with its lenders to obtain additional waivers or amendments prior to the expiration of this one so as to address potential future non-compliance with covenants.

"We look forward to further dialog with our lenders as we consider all viable options to improve our capital structure, which may include asset dispositions, raising additional debt and/or equity capital, and modifying or extending our outstanding debt," said Dan D'Arrigo, executive vice president and chief financial officer, in the release.

MGM Mirage is a Las Vegas-based gaming company.

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