Company sells record $850 mil. in investment-grade bonds

Thursday, Sept. 14, 2000 | 11:31 a.m.

MGM MIRAGE sold $850 million in bonds Tuesday evening in what company officials called the largest investment-grade debt offering in the history of the gaming industry.

The 10-year senior notes were priced to yield 8.59 percent, MGM MIRAGE President and Chief Financial Officer Jim Murren told the state Gaming Control Board. Proceeds were used to refinance a term loan taken out to finance the $6.4 billion acquisition of Mirage Resorts Inc. earlier this year.

MGM MIRAGE had initially planned to sell just $500 million in bonds, Murren said, but increased the size of the sale after $1.6 billion in orders were received.

"Response was amazingly strong," Murren said.

The bond offering was handled by Morgan Stanley Dean Witter and Banc America Securities.

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