MGM MIRAGE boosts note offering

Friday, Sept. 12, 2003 | 11:07 a.m.

MGM MIRAGE announced today that it is issuing $600 million in 6 percent senior notes following high demand for its offering on Thursday.

The Las Vegas-based company, the third-largest U.S. casino operator, initially planned to sell $400 million of the six-year notes.

Funds raised from the sale are being used to pay debt from a line of credit and for general purposes, according to a filing the firm made with the Securities and Exchange Commission. Bank of America Corp., Citigroup Inc., Deutsche Bank AG and J.P. Morgan Chase & Co. are managing the offering.

James Murren, president, chief financial officer and treasurer for MGM MIRAGE, said demand for the notes was so strong Thursday that the company moved to offer the higher amount.

Separately, credit rating company Moody's Investors Service said Thursday the MGM MIRAGE's outlook is stable and confirmed the company's existing long-term and short-term ratings.

Moody's assigned a Ba1 rating to the new senior secured notes and affirmed ratings on other credit facilities. Last week, Standard & Poor's, citing the company's stock repurchasing program detracting from debt-reduction efforts, downgraded the company's credit rating to below investment grade.