Sunday, March 15, 2009

Debt-Saddled MGM Mirage Looking To Sell Off Properties

Feather News
March 15, 2009

Gaming giant MGM Mirage may want to sell off properties for cash that it can use to pay off more than $1.5 billion it owes this year on bond payments and interest, according to the Wall Street Journal.

MGM Mirage owns 10 casino resorts in Las Vegas and others outside Las Vegas and MGM Mirage is Nevada's biggest employer.

The Wall Street Journal quotes sources as saying, "basically everything is for sale."

If MGM cannot change the terms with its bank lenders, the lenders could demand accelerated payments and trigger defaults. Moody’s pegged MGM Mirage's long-term debt rating at B3, six grades below investment grade.

MGM's major shareholder, Kirk Kerkorian, made billions through buying and selling the MGM movie studio. Kirkorian bought Mirage Resorts in 2000 for $6.4 billion and, later, Mandalay Bay Resorts for $7.9 billion. The 91-year old Kirkorian owns about 50 percent of MGM Mirage.

Other properties owned by MGM Mirage include Mandalay Bay, Bellagio, Luxor, Excalibur, New York New York, Monte Carlo, CityCenter, Bellagio, Circus Circus Signature at MGM Grand, MGM Grand and Las Vegas'

MGM Mirage agreed to sell Treasure Island in December and has delayed its City Center project on the Las Vegas Strip.