MGM Mirage gets tenders for about 54% of 6½% notes, 93% of 6% notes

By Jennifer Chiou

New York, June 11 - MGM Mirage announced the completion of 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.

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

The company received valid tenders from holders of $122.3 million, or about 54%, of the 6½% notes and $762.6 million, or about 93%, of the 6% notes. Settlement was slated for Thursday.

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

Those who tendered their notes prior to the early participation deadline received the total consideration equal to $1,000 per $1,000 principal amount of notes, which included 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 previously 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 were the joint book-running managers.

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

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

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