MGM MIRAGE (MGM) Amends Senior Credit Facility

April 29, 2009 5:09 PM EDT

MGM MIRAGE (NYSE: MGM) entered into an amendment to its senior credit facility, including a waiver through June 30, 2009, of the requirement that the Company comply with the senior credit facility's financial covenants.

Under the terms of the amendment and waiver, the Company will be able to fulfill its remaining equity contributions to CityCenter through the issuance of an irrevocable letter of credit in the amount of $224 million. The Company is also permitted to enter into revised completion guarantees related to CityCenter.

Under the terms of the amendment, the Company repaid $100 million under the senior revolving credit facility, which amount is not available for re-borrowing without the consent of the requisite lenders. In addition, the Company has agreed to grant the lenders security interests in the assets of Gold Strike Tunica and certain undeveloped land on the Las Vegas Strip, subject to requisite gaming and other approvals, to secure debt under the facility in an amount up to $300 million. MGM Grand Detroit, which is a co-borrower under the senior credit facility, has agreed to grant the lenders a security interest in its assets to secure its borrowings under the facility, subject to gaming and other approvals.

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