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MGM Mirage (MGM) reported a strong response to its offer to repurchase $1.08 billion of notes maturing later this year as investors look to take advantage of an early participation premium.

While the positive reception for the deal isn't seen as a game changer for the casino operator, some analysts say it's a good sign for MGM Mirage's restructuring process aimed at strengthening its balance sheet.

"It's a good first step," said Dennis Forst, an analyst at KeyBanc Capital Markets. "There's still a lot of work to be done before they're out of the woods."

Amid broader market declines, the company's stock recently fell 7 cents, or 1%, to $7.16 after gaining in pre-market trading.

The highly leveraged casino operator is pushing to pay off near-term debt, recently selling $1.5 billion in notes and $1.15 billion in stock to help do so. The deals will help pull the troubled casino operator from its dangerous debt quagmire, while removing the need for forced asset sales and distressed debt exchanges.

MGM amended its senior credit facility in mid-April to allow it to pay the full construction costs on its Las Vegas City Center project. Investors had been concerned about a possible default on the credit pact after MGM's auditor raised doubts about its ability to continue as a going concern.

Chairman and Chief Executive Jim Murren said at the time the sales marked a "new beginning" for the company. He added MGM is in a good position to continue with the work needed to improve profitability.

Holders of the notes in the tender offer had until 5 p.m. EDT Wednesday to take advantage of the premium, $30 per $1,000 of notes. Those who ultimately tender their notes by the June 10 deadline but didn't do so by Wednesday will get $970 per $1,000 of notes, not face value as those tendering early will.

By the deadline, 54% of the $226.3 million in notes that mature July 31 were tendered, as were 93% of the $820 million in notes due Oct. 1.

-By A.D. Pruitt, Dow Jones Newswires; 201-938-2269; angela.pruitt@dowjones.com

(Mike Barris contributed to this report.)