Why MGM stock holder have MGM Mirage ?”
LAS VEGAS—Casino operator MGM Mirage says it has amended a senior notes exchange offer in part to extend its expiration date. The Las Vegas-based company on Thursday pushed the expiration date as well as the early participation and withdrawal dates to Sept. 30. MGM Mirage had just extended the early participation date last week to Sept. 24 from Sept. 10. The initial expiration date was Sept. 24 as well. Under the terms of the offer, eligible holders can exchange a portion of $782 million in 8.5 percent senior notes due 2010 for up to $500 million in 10 percent senior notes due 2016. MGM Mirage says about $21 million of existing notes had been validly tendered as of Wednesday. If accepted, the notes would be exchanged for approximately $24.7 million new notes.
Marcial: Is MGM Mirage a Sucker’s Bet? Despite the stock’s low price, analysts say MGM remains risky for investors as even more casinos are set to open in Las Vegas During its heyday in 2007, gaming giant MGM Mirage (MGM) traded as high as 100 a share, reflecting the booming business at its 10 casino resorts in Las Vegas and eight others in Mississippi, Michigan, and Macao. But the financial crisis and economic recession last year halted the good times and hammered the stock, which, by Sept. 15, 2009, had tumbled to 13.37. (The shares have recovered somewhat from a 52-week low of 1.81 reached on Mar. 6.) Does the stock’s steep decline signal a great buying opportunity? Don’t bet on it. Some industry experts warn that gaming activity in Las Vegas and Macao continues to shrivel. Apart from the big hit to the casino industry from the recession, the gaming business also will be hurt by increasing competition as many pending projects in Las Vegas are completed, some analysts say. “Investors
