MGM Mirage (MGM) reported a strong response to its offer to
repurchase $1.08 billion of notes maturing later this year as
investors look to take advantage of an early participation
premium.
Shares rose 2.1% premarket to $7.40. The stock is down 47% this
year.
The highly leveraged casino operator is pushing to pay off
near-term debt, recently selling $1.5 billion in notes and $1.15
billion in stock to help do so. Chairman and Chief Executive Jim
Murren said at the time the sales marked a "new beginning" for the
company. He added MGM is well-positioned to continue with the work
needed to improve profitability.
Holders of the notes in the tender offer had until 5 p.m. EDT
Wednesday to take advantage of the premium, $30 per $1,000 of
notes. Those who ultimately tender their notes by the June 10
deadline but didn't do so by Wednesday will get $970 per $1,000 of
notes, not face value as the early tenderers will.
By the deadline, 54% of the $226.3 million in notes that mature
July 31 were tendered, as were 93% of the $820 million in notes due
Oct. 1.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com