MGM Mirage seeks credit facility amendment to extend maturities

By Sara Rosenberg

New York, Feb. 8 - MGM Mirage is looking to amend its $5.55 billion senior credit facility to extend the maturity of a substantial portion of the debt to Feb. 21, 2014 from Oct. 3, 2011, according to a news release.

Pricing on the extended debt will be Libor plus 500 basis points, 100 bps higher than pricing on the non-extended debt.

Lenders are also being offered a total of 75 bps in amendment and extension fees.

In addition, under the amendment, $1.4 billion of revolver loans would be converted into term loans.

Also, the amendment would allow the company to issue additional secured debt and covenants would be revised.

Final approvals are being sought by Feb. 24.

Lenders approving the proposed amendments would receive prepayments of at least 20% of their outstanding loans and lending commitments. The prepayments would increase by 1% for each full percentage by which lender participation in the transaction exceeds 80%, to a maximum of 25%.

Bank of America is the lead bank on the deal.

"We are pleased to have received strong initial support from our leading lenders for this proposed transaction, and are now working with the rest of our lender syndicate to achieve maximum participation," said Dan D'Arrigo, executive vice president and chief financial officer, in the release.

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

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