MGM Looks to Extend Debt, Flee A.C.

MGM Mirage is looking to extend $5.5 billion in debt nearly three years.
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(MGM Mirage article updated with Moody's rating.)

LAS VEGAS (

TheStreet

) --

MGM Mirage

(MGM) - Get Report

is looking to push back $5.55 billion of debt by nearly three years.

Shares of MGM Mirage are falling 1.3% to $10.83 in afternoon trading, as investors were hoping MGM would push the debt back by just two years. Instead, the company wants to extend facilities from Oct. 3, 2011 to Feb. 21, 2014.

The casino operator asked its lenders for final approval by Feb. 24. If approved, $1.4 billion of MGM's revolving loans and commitments would be converted into term loans. The transaction would also give MGM Mirage the ability to issue more secured debt.

As a result of the proposal, Moody's Investor Services said it is considering upgrading its ratings on MGM. Moody's currently has a Caa2 corporate family rating and a Caa3 probability of default rating on the company.

After much speculation, MGM also finally revealed that it will put its Borgata interest into a divestiture trust. MGM has been battling with the New Jersey Casino Control Commission over its relationship with Pansy Ho, its joint venture partner in Macau. The Casino Control Commission labeled her an "unsuitable" business partner.

MGM co-owns the Borgata with

Boyd Gaming

(BYD) - Get Report

.

-- Reported by Jeanine Poggi in New York.

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