Gaming briefs for Feb. 25, 2004

Wednesday, Feb. 25, 2004 | 10:40 a.m.

Debt rated

Ratings agency Moody's Investors Service has assigned a Ba1 rating to MGM MIRAGE's $225 million senior secured debt offering due 2014.

The proceeds from the offering will be used to repay existing loans outstanding under the company's $1.5 billion revolving credit facility, pay fees and expenses and for general corporate purposes. The company's rating outlook remains stable.

Moody's said it expects capital spending and share repurchase activity "to consume substantially all of the company's cash flow and asset sale proceeds in 2004, and so improvement in credit statistics is predominantly reliant upon earnings growth."

Separately, Fitch Ratings has affirmed the BB+ senior secured debt issued by MGM MIRAGE. The rating outlook is stable.

Panel approves slot plan

ANNAPOLIS, Md. -- A Senate committee voted Tuesday to authorize 15,500 slot machines at up to six locations scattered around Maryland.

The Budget and Taxation Committee approved a heavily amended version of Gov. Robert Ehrlich's slots bill on a 11-2 vote after agreeing to the governor's demand that it eliminate Ocean Downs in Worcester County as a potential location for slots.

The bill, which will come to the Senate for debate this week, would authorize up to 9,000 slot machines at three tracks with Laurel, Pimlico, Rosecroft and a track in Allegany County allowed to bid for the three licenses.

It authorizes 6,500 machines at three off-track locations that could be located in Dorchester, Cecil and Prince George's counties and Baltimore city.