MGM Mirage turns attention to bank negotiations

LAS VEGAS, Nevada -- MGM Mirage's talks to obtain a $750 million secured loan from Los Angeles private equity company Colony Capital LLC have been put on hold as MGM Mirage focuses on negotiations with banks, Bloomberg News reported today.

The news service attributed the report to people with knowledge of the discussions.

JPMorgan analyst Joseph Greff, in the meantime, said MGM Mirage continues to have support of its lenders as it seeks to bolster its finances and find additional funding for its $8.7 billion CityCenter development on the Las Vegas Strip.

Reaffirming his neutral ranking on MGM Mirage stock, Greff said a meeting with MGM Mirage Chairman and Chief Executive Jim Murren this week affirmed the resort operator is exploring various options to deal with its financial pressures, which include $13 billion in debt. Those options include asset sales, debt for asset swaps and bond-for-bond exchanges.

In a note to clients, Greff said "the banks seem to be working closely with MGM to ensure the company makes it through this restructuring."

"MGM indicated that it and the banks want to see CityCenter completed and that there are third parties out there who could help complete as well," Greff said in the note.

The stock market was closed today for Good Friday. MGM Mirage stock closed Thursday at $5.30, up 11.6 percent or 55 cents. In the past year it has traded in the range of $55.06 to $1.81.

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