Feb. 2 (Bloomberg) -- MGM Resorts International, the biggest casino operator on the Las Vegas strip, is seeking to push out maturities on $3.5 billion of loans by a year to February 2015.
The company has asked lenders to extend the due date for the debt to Feb. 23, 2015 from Feb. 21, 2014, the Las Vegas- based company said today in a statement today distributed by PR Newswire. It is also seeking an amendment to reduce borrowing costs.
“We have support from our leading lenders for our amendment and extension, and we are working with the balance of our lenders to achieve maximum participation,” Chief Financial Officer Dan D’Arrigo said in the statement.
The proposal includes an interest rate grid tied to collateral coverage levels and would lower the cost of the debt by as much as 250 basis points, MGM said. The floor on the London interbank offered rate would be cut in half to 100 basis points. A basis point is 0.01 percentage point.
Lenders approving the amendment will get a 20 percent reduction of their existing credit exposure, MGM said.
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