soared on Thursday after the company reached a deal with partner Dubai World and lenders to complete the City Center project on the Las Vegas Strip.
MGM shares closed at $8.38, up $2.20, or 35.6% on volume of more than 72 million shares.
MGM said it reached an agreement late Wednesday with Dubai World, the investment arm of the Dubai government, and their banks for the $8.7 billion
. Dubai World will drop a lawsuit filed against MGM.
Both the casino operator and Dubai World will finance their remaining CityCenter payments with letters of credit. The banks will fund $1.8 billion to finish the development.
"MGM is not out of the woods by any stretch of the imagination, but we are encouraged by these events nevertheless," wrote JPMorgan analyst Joseph Greff.
shares rose 14% to $20.52 after the company posted a first-quarter profit of 52 cents a share Wednesday that topped analysts' estimates by 19 cents. The company also reinstated its quarterly dividend, which was temporarily suspended after the third quarter.
Steven Kent of Goldman Sachs expects the company will continue to benefit from "daycation" trends as gamblers have started to frequent local casinos instead of traveling to farther locations in an attempt to save some money during the recession. He upgraded Ameristar to buy from neutral and raised the company's price target to $24 from $13.
Las Vegas Sands
closed at $7.82, up 1.3%.
closed at $39.23, up 2.8%.
Isle of Capri Casinos
finished at $10.74, up 11.9%.
closed at $9.19, up 4.3%.
Melco Crown Entertainment
finished at $4.55, up 3.4%.
Penn National Gaming
finished at $34.02, up 3.4%.
closed at $12.48, up 1.7%.