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MGM Mirage Buys More Time to Repay Debt

MGM Mirage extends its time-frame to repay its debt by exchanging senior notes.

LAS VEGAS (

TheStreet

) -- MGM Mirage is extending the time it has to repay its substantial debt.

The casino and hotel operator offered to exchange part of its $780 million senior notes due next year for up to $500 million in senior notes due 2016.

The exchange offer expires on Sept. 24 unless extended.

MGM posted a $212.6 million loss in the second quarter and had $12.3 billion in long-term debt as of June 30.

Still, according to one analyst, the move is hardly an a desperate, all-or-nothing bet.

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"By our calculations, MGM is not in any danger of breaking its debt covenants in 2010, so this is not a desperation move of any sort," Janet Brashear of Bernstein Research wrote in a note. "We believe that management is being prudent by providing a greater cushion or margin of safety with respect to its 2010 cash obligations."

Shares of the company were about flat at $8.65 in afternoon trading.

-- Reported by Jeanine Poggi in New York.

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