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MGM Mirage halts debt exchange
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LAS VEGAS REVIEW-JOURNAL
MGM Mirage halted a debt exchange today when not enough of the company’s debt holders were willing to accept the deal.
The Las Vegas-based casino operator offered debt holders to exchange up to $782 million in 8.5 percent senior notes due in 2010 for up to $500 million in 10 percent senior notes due in 2016.
Only about $9.1 million of the notes had been tendered as of Wednesday, MGM Mirage said in brief statement this morning. The minimum amount required for the offer was $25 million. Notes validly tendered and not withdrawn will be returned to their holders, the company said.
MGM Mirage announced the exchange offer in late August. The company extended the offer’s expiration date last month.
Analysts saw the exchange as a way for MGM Mirage to refinance some of its $12.3 billion in long-term debt as of June 30.
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Wow! I sure wish I could push my debts down the road until I hit the lottery or a jackpot. These huge casino companies get to do it because they have made money before and tell everyone that they will make money again. In the meantime they treat all customers like a diesease.
And the survey says....NO.
Time to turn the keys to Bellagio over to Wynn Resorts, and infuse MGM Mirage with much needed capital. Such a transaction insures all the same people stay in place above the glass ceiling in Las Vegas, rational for both companies.
MGM Mirage has been self-competing among Hotel Presidents for too long, bundling is bad for the customer, bad for labor. Cost efficiencies trickled down in a negative way.
Perhaps Mr. Baldwin can operate Bellagio, as his strength is operations.