Moody's rates MGM notes B1

Moody's Investors Service said it affirmed MGM Mirage's Caa2 corporate family rating and Caa3 probability-of-default rating after the company said it intends to issue $1.5 billion of new senior secured notes. The agency assigned a B1 rating (LGD1, 2%) was assigned to the proposed notes.

MGM has an SGL-4 speculative grade liquidity rating. The company also has senior unsecured notes rated Caa2 (LGD3, 40%), senior subordinated debt rated Ca (LGD5, 85%) and senior secured notes rated B1 (LGD1, 2%).

The outlook is negative.

Proceeds will be used to repay bank debt, tender for various notes due in 2009 and redeem notes due 2017. The new senior secured notes will be secured by liens on the Bellagio and Mirage properties and guaranteed by most domestic subsidiaries.

The affirmation incorporates the anticipated improvement in liquidity as a result of the debt and equity issuance and expected amendment and waiver to its senior credit facility, according to the agency.

MGM's debt-to-EBITDA ratio for the 12 months ended March 31 was about 8.7 times.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.