Bank loan for merger with Mirage detailed

Thursday, April 13, 2000 | 11:01 a.m.

MGM Grand Inc. of Las Vegas, the casino company controlled by billionaire Kirk Kerkorian, disclosed details about its previously announced bank loan that will be used to help fund its $6.7 billion purchase of Mirage Resorts Inc.

MGM Grand said a group of banks agreed to loan it $4.3 billion. MGM Grand will get a $2 billion, five-year line of credit; a $1 billion, one-year credit line; and a $1.3 billion term loan. Banc of America Securities LLC is leading the group of banks arranging the loan and credit lines.

Bankers Trust Co. is syndication agent for the credit lines; Citibank N.A. and Commerzbank AG are documentation agents; CIBC World Markets, Societe Generale, the Bank of Nova Scotia, Bank One, Merrill Lynch Capital Corp. and Bear Stearns Corporate Lending Inc. are co-documentation agents; Comerica Bank is co-agent; Fleet Bank is managing agent; and Bank of America is administrative agent.

MGM Grand agreed in March to buy Mirage for $21 a share in cash and about $2 billion in assumed debt. The combination will combine some of the best-known casinos on the Las Vegas Strip, including Mirage's Bellagio and MGM Grand's New York-New York, under the same ownership.

MGM Grand has also said in filings with the U.S. Securities & Exchange Commission that it might sell $1.2 billion in new stock, with Kerkorian buying at least $600 million, to finance the purchase.