MGM Reportedly Weighing Sell Off Las Vegas and other assets

MGM Mirage, which has warned it could breach its credit agreements this year if the economy doesn’t rebound, may break itself up to lure potential buyers as it races to raise the more than $1.5 billion it owes in bond payments and interest this year, according to a Wall Street Journal report on Saturday. Citing unnamed people “familiar with the matter,” the newspaper said buyers had been evaluating the possible sale of several of the casino operator’s separate properties, including the Bellagio and the MGM Grand Detroit. MGM has said it is in talks with its bank lenders for a waiver on its loans or to amend the debts' covenants, but said there was no assurance that lenders will agree. If the company is unable to amend terms or receive a waiver its bank lenders could accelerate repayment of the loans and, under certain circumstances, defaults on its other debt may be triggered, MGM has said.


Other wire service reports said potential buyers have been sizing up a purchase of the Bellagio casino as well as the MGM Grand Detroit. MGM has discussed selling the Bellagio but so far could not garner an attractive price, according to people involved in the discussions. MGM reportedly owns 760 acres of property in Las Vegas, and additional property in other locations. Equity in MGM’s multi-tower CityCenter could also be pledged against its loans. For more information on MGM Mirage, visit www.mgmmirage.com.

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