New MGM Mirage CEO will "dramatically" cut debt

LAS VEGAS, Nevada -- As reported by Bloomberg: " MGM Mirage's new chief executive officer, James Murren, said he plans to 'dramatically' reduce debt and will consider further casino sales as he overhauls the company's balance sheet.

"Murren plans to refinance maturing bonds as bank lending resumes and markets open up. MGM Mirage may buy back some notes trading at discounted levels, either through market purchases or tender offers, he said in an interview yesterday. Nothing is off the table, said Murren, 47, who also was named chairman.

"'We're going to pull every lever we feel like we should pull to strengthen this company, to not only weather the recession, but come out of it stronger,' Murren said. 'We are certainly not looking to aggressively sell assets, but the point is that we do have assets that are attractive and we are going to be very responsive.'

"Murren, who took over the biggest Las Vegas Strip casino owner in November when Terry Lanni quit, inherited an indebted company still expanding in the face of a recession and declining revenue in Vegas and China's Macau. Murren also has to deal with the financing of the CityCenter resort development on the Strip amid tighter credit markets.

"MGM Mirage, the casino company majority-owned by billionaire Kirk Kerkorian, agreed last month to sell its Treasure Island Hotel & Casino to real-estate investor Phil Ruffin for $775 million. Murren described the deal as "a good transaction on both sides" and said Ruffin approached MGM..."