New Issue: MGM Mirage sells $845 million 10-year secured notes at par to yield 9%

By Paul A. Harris

St. Louis, March 9 - MGM Mirage priced $845 million of 10-year senior secured notes (B1/B/) at par to yield 9% on Tuesday, according to an informed source.

The deal priced at the tight end of the 9% to 9¼% price talk.

Bank of America Merrill Lynch, RBS Securities Inc., Barclays Capital Inc., J.P. Morgan Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., UBS Investment Bank, Commerzbank, Morgan Stanley & Co. Inc. and Wells Fargo Securities were joint bookrunners for the quick-to-market issue.

Proceeds will be used to repay the Las Vegas-based gaming, hospitality and entertainment company's credit facility in relation to a recent amendment to its credit agreement.

Issuer:	MGM Mirage
Amount:	$845 million
Maturity:	March 15, 2020
Securities:	Senior secured notes
Bookrunners:	Bank of America Merrill Lynch, RBS Securities Inc., Barclays Capital Inc., J.P. Morgan Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., UBS Investment Bank, Commerzbank, Morgan Stanley & Co. Inc., Wells Fargo Securities
Co-managers:	Scotia Capital, US Bancorp
Coupon:	9%
Price:	Par
Yield:	9%
Spread:	529 bps
Call protection:	Four years
Trade date:	March 9
Settlement date:	March 16
Ratings:	Moody's: B1
	Standard & Poor's: B
Distribution:	Rule 144A
Price talk:	9% to 9¼%

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