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MGM Capricorn Metals Ltd

2.82
-0.04 (-1.40%)
24 May 2024 - Closed
Realtime Data
Share Name Share Symbol Market Type
Capricorn Metals Ltd TG:MGM Tradegate Ordinary Share
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.04 -1.40% 2.82 2.74 2.88 2.78 2.78 2.78 1,095 22:50:00

MGM Mirage To Give Bonus To All Participants In Debt Swap

11/09/2009 12:11pm

Dow Jones News


Capricorn Metals (TG:MGM)
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MGM Mirage (MGM) said Friday that all holders who participate in the company's pending debt swap will receive a $50 bonus per $1,000 of notes, not just those who tendered as of Thursday's bonus deadline.

The heavily indebted casino giant late last month offered eligible holders of $782 million in notes due next year to swap them for up to $500 million of higher-yielding notes that mature in 2016.

The company didn't disclose how many of notes have been tendered so far. Those that do by the Sept. 24 deadline will get $1,175 for each $1,000 of the 2010 notes.

Gaming and entertainment companies were hit hard by the financial crisis and recession, as their big debt loads - run up by expanding during the real-estate bubble - have been a drag on them as revenue plunged. Many have been swapping out near-term debt for other financing as capital markets have loosened.

MGM has been struggling to remain in compliance with its debt covenants and has been considering selling off properties to meet looming obligations. In May, it said it would pay back $825.6 million in debt under its senior credit facility after a stock and bond offering. Those offerings led the company to remove a bankruptcy concern statement from a filing in June, saying there is no longer "substantial doubt" about its ability to remain operational.

MGM shares closed Thursday at $11.24 and weren't active premarket.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com

 
 

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