MGM Mirage (MGM) Looking To Sell Off Several Casino Properties
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MGM Mirage (NYSE: MGM) may have to be sliced and diced, as it races to negotiate new terms on loans with several lenders, in order to avoid defaulting on any debt covenants, according to the Wall Street Journal.
In order to raise cash and pay off debt, MGM Mirage is looking at selling off some its casino properties, including the Bellagio, MGM Grand Detroit as well as other casinos. The Journal said that MGM has not been able to find an attractive price for the Bellagio as of yet.
"Basically everything MGM owns is for sale," said a person familiar with the situation. MGM recently agreed to sell its popular Treasure Island casino hotel to Phil Ruffin for $775 million.
MGM not only needs to raise more than $1 billion to fund its massive, 67-acre resort and residential project in Las Vegas called City Center, but it must also reduce debt it built up this decade.
The Las Vegas-based company has $1.27 billion in bond payments due later this year, in addition to about $674 million in existing interest payments.
On Friday, MGM was negotiating with a group of lending banks "to hand up to $2 billion in liens directly on MGM Mirage assets", those people said. MGM's hope is that the new liens will buy it some time. The hope is to get the banks to waive a lending requirement that MGM be judged a "going concern" by its auditors.
Investment bank Evercore Partners has been hired by MGM to negotiate with lenders.
In order to raise cash and pay off debt, MGM Mirage is looking at selling off some its casino properties, including the Bellagio, MGM Grand Detroit as well as other casinos. The Journal said that MGM has not been able to find an attractive price for the Bellagio as of yet.
"Basically everything MGM owns is for sale," said a person familiar with the situation. MGM recently agreed to sell its popular Treasure Island casino hotel to Phil Ruffin for $775 million.
MGM not only needs to raise more than $1 billion to fund its massive, 67-acre resort and residential project in Las Vegas called City Center, but it must also reduce debt it built up this decade.
The Las Vegas-based company has $1.27 billion in bond payments due later this year, in addition to about $674 million in existing interest payments.
On Friday, MGM was negotiating with a group of lending banks "to hand up to $2 billion in liens directly on MGM Mirage assets", those people said. MGM's hope is that the new liens will buy it some time. The hope is to get the banks to waive a lending requirement that MGM be judged a "going concern" by its auditors.
Investment bank Evercore Partners has been hired by MGM to negotiate with lenders.
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