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MGM GRAND INCREASES AMOUNT OF DEBT OFFERING, SECURES BANK COMMITMENT

 MGM GRAND INCREASES AMOUNT OF DEBT OFFERING,
 SECURES BANK COMMITMENT
 BEVERLY HILLS, Calif., April 3 /PRNewswire/ -- MGM Grand Inc. (NYSE: MGG) announced today that it has filed with the SEC amended terms for its previously announced public offering of First Mortgage Notes by its subsidiary, MGM Grand Hotel Finance Corp., and has accepted a letter of commitment from Bank of America for a $60 million working capital loan.
 An aggregate of $430 million in First Mortgage Notes, with expected terms of seven and ten years, will be offered to the public. Bear, Stearns & Co. Inc. is the lead manager, and Donaldson, Lufkin & Jenrette, Oppenheimer & Co. Inc., and B.T. Securities Corp. (a subsidiary of Bankers Trust Co.), are co-managers.
 In addition, the company announced that its principal shareholder, Tracinda Corp. has agreed to purchase up to $100 million of additional equity by means of a rights offering to MGM Grand common stockholders. The rights offering (the terms of which are yet to be determined) will be completed before Feb. 15, 1993. Infusion of the additional equity will be assured by a $100 million letter of credit from Tracinda. The rights offering will be made only by means of a prospectus.
 Pursuant to the terms of the Bank of America commitment letter, MGM Grand Hotel will obtain a $60 million secured working capital revolving credit facility. The obligation to lend is subject to the fulfillment of certain conditions, including execution of definitive agreements.
 MGM Grand also stated in its filing that it will seek $50 million in capital leases for equipment in the new MGM Grand Hotel and Theme Park, which is under construction.
 "Upon completion of these transactions, our financing for the MGM Grand Hotel and Theme Park will be complete," said Bob Maxey, chief executive officer of MGM Grand. "The additional equity infusion will mean that we will have approximately $455 million of common equity in MGM Grand Hotel, and will thus have substantially improved what is already the strongest balance sheet in our industry."
 A registration statement relating to the First Mortgage Notes has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities' laws of any such state.
 The MGM Grand Hotel and Theme Park will be the largest hotel in the United States and the first Las Vegas theme park. It is scheduled to open in early 1994.
 -0- 4/3/92
 /CONTACT: Eugene Shutler of MGM Grand Inc, 310-271-3793; or Shari Nakakura 213-629-4974, for MGM Grand Inc./
 (MGG) CO: MGM Grand, Inc.; MGM Grand Hotel Finance Corp. ST: California; Nevada IN: ENT LEI SU:


DG -- SF012 -- 5106 04/03/92 19:50 EST
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Publication:PR Newswire
Date:Apr 3, 1992
Words:512
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