LAS VEGAS (
got a sign that its banks won't let it succumb to bankruptcy, as the casino operator announced on Friday that it successfully extended the maturity of part of its credit facility.
Lenders representing about $4.37 billion of its outstanding commitments under its $5.55 billion senior bank credit facility entered into an agreement to extend the maturity of a part of its credit facility from Oct. 3, 2011 to Feb. 21, 2014.
"This Amendment underscores the tremendous confidence our bank group has in our company," CEO Jim Murren said in a statement. "The transaction provides us with additional long-term financial flexibility and reflects our continued commitment to strengthen our financial position."
Under the agreement, MGM would have to cut 20% in credit exposures to the lenders and the credit line would be re-tranched so that about $1.4 billion of revolving loans will be converted into term loans. This would leave a revolving credit commitment of about $2 billion, $400 million of which will mature in 2011.
MGM will also have to repay the approximately $1.2 billion it owes to lenders who didn't agreed to extend their commitments.
Last week MGM reported a narrower fourth-quarter loss, but failed to meet Wall Street's expectations.
Shares of MGM Mirage are gaining 2.5% to $10.71 in pre-market trading.
-- Reported by Jeanine Poggi in New York.
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