MGM (MGM) Shares Climb as Dubai Investors Propose Financing to Lock-In Completion of City Center Project

April 13, 2009 10:33 AM EDT

Shares of MGM Mirage (NYSE: MGM) have rebounded by nearly 130% since the beginning of April and, this morning, this strong upward momentum is continuing. The stock is currently up more than 14.5% just an hour after the open on the back of a bullish WSJ article. The stock most recently traded at $6.07.

The WSJ's piece discusses recent chatter related to the financing of the troubled City Center, a project being undertaken by MGM and Dubai World. According to sources, Dubai World has proposed that the two partners and their lenders pledge as much as $3 billion in order to lock-in the completion of their City Center project. While details of the possible agreement are not yet available, sources have suggested that a full financing would require banks to forego an earlier agreement to release a $1.8 billion loan only after MGM Mirage and Dubai World have invested more of their own cash.

The agreement would effectively guarantee the completion of the City Center project, even if MGM Mirage was forced into bankruptcy.

The news is also boosting shares of Las Vegas Sands (NYSE: LVS), which are currently up nearly 14% to $5.04.

Related Categories

Corporate News
Insiders' Blog
Momentum Movers

Stocks Mentioned

Related Entities

• Bankruptcy

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?