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MGM Mirage dramatically cuts amount of new notes to be issued in exchange offer for 8½% notes
By Angela McDaniels
Tacoma, Wash., Sept. 17 - MGM Mirage has reduced the maximum principal amount of new 10% senior notes due Sept. 15, 2016 it will issue in exchange for its 8½% senior notes due 2010 to $25 million from $500 million, according to a company news release.
The company also added a minimum tender condition, which states that the offer can be canceled if the amount of tenders received would result in less than $25 million of new notes being issued.
The early participation date and the expiration date of the exchange offer have both been extended to 11:59 p.m. ET on Sept. 30 from Sept. 24, and the withdrawal date was extended to the expiration date from Sept. 10.
The early participation date was previously extended to Sept. 24 from Sept. 10.
For each $1,000 principal amount of notes tendered and accepted, holders will receive $1,175 principal amount of the new notes plus accrued interest up to but excluding the settlement date.
Of the $782 million principal amount of notes outstanding, about $21 million had been tendered as of the close of business on Sept. 16. If accepted, these notes would be exchanged for approximately $24.7 million principal amount of new notes.
The company noted than an issue of securities with a small outstanding principal amount available for trading generally commands a lower price than does a comparable issue of securities with a greater float. Therefore, the market price for the new notes may be adversely affected by the relatively small float, and the trading prices of new notes may be more volatile.
The offer began Aug. 27 and is being made only to eligible holders.
MGM Mirage is Las Vegas-based gaming, hospitality and entertainment company.
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