MGM MIRAGE looks better placed for a quick flotation on the Hong Kong equities market of its 50% owned Macau casino following more restructuring work on its global debt.
The company says it has been able to push back the date of the maturity terms on US$3.6 billion of its bank debt from October 2011 to February 2014.
Crucially the package also allows the company to incur or issue debt, equity-linked and equity securities subject to certain limitations, and to refinance debt that matures before February 2014 but with some important conditions.
The restated loan agreement also provides an immediate 100 basis point increase in interest rate for those of the lenders extending their loans and commitments to February 2014.
The deal also retains the original maturity date in October 2011 for the approximately US$1.2 billion owed to lenders which have not agreed to extend their commitments.
The agreement also continues the minimum EBITDA and maximum annual capital expenditure covenants previously agreed with creditors, but with periodic adjustments during the extension period.
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