MGM Mirage announces early results in tender for 6½% notes, 6% notes

By Jennifer Chiou

New York, May 28 - MGM Mirage announced the early participation results in the cash tender offer to purchase any and all of the $226.3 million of 6½% senior notes due July 31, 2009 of Mandalay Resort Group as well as its $820 million of 6% senior notes due Oct. 1, 2009.

As of 5 p.m. ET on May 27, holders had tendered $121.8 million, or about 54%, of the 6½% notes and $760.8 million, or about 93%, of the 6% notes.

The offer ends at 11:59 p.m. ET on June 10. It began on May 13.

Those who tendered their notes prior to the early participation deadline will receive the total consideration equal to $1,000 per $1,000 principal amount of notes, which includes an early tender premium of $30, plus any accrued interest up to the payment date.

To fund the offer, the Las Vegas-based gaming, hospitality and entertainment company also announced the start of its underwritten public offering of 81 million shares of its common stock for gross proceeds of about $1 billion. Merrill Lynch & Co., Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc. and UBS Investment Bank are the joint book-running managers.

The offer is subject to customary conditions, including a financing condition.

The dealer manager is Banc of America Securities LLC (888 292-0070 or call collect 980 388-9217). The information agent is Global Bondholder Services Corp. (866 470-4200 or call collect 212 430-3774).

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