Terry Lanni didn't take a victory lap. He didn't stop for the applause and he didn't wait for the accolades. Instead, Lanni told the world on Nov. 13 he was retiring as chairman and chief executive officer of gaming industry giant MGM Mirage after 13 years at the helm. Five days later, the casino company's board of directors voted to have President and Chief Operating Officer Jim Murren fill Lanni's positions.
(Bloomberg) -- MGM Mirage’s new chief executive officer, James Murren, said he plans to “dramatically” reduce debt and will consider further casino sales as he overhauls the company’s balance sheet. Murren plans to refinance maturing bonds as bank lending resumes and markets open up. MGM Mirage may buy back some notes trading at discounted levels, either through market purchases or tender offers, he said in an interview yesterday.
Las Vegas (AP) -- Casino operator MGM Mirage Inc. is selling the Treasure Island Hotel & Casino on the Las Vegas Strip to billionaire Phil Ruffin for USD 500 million, the company said Monday. Ruffin, whose interests include casinos and greyhound race tracks, purchased the property through Ruffin Acquisition LLC for USD 500 million cash and USD 275 million in secured notes issued by Ruffin Acquisition and secured by Treasure Island's assets, MGM Mirage said. The combined value of the deal, including debt, is USD 775 million.
With the US economy in the tank and foreign countries more open to big gambling resorts, MGM Mirage is damping up its expansion efforts with a new division focused on international gaming expansion. Lloyd Nathan, who joined the company in 2002 and most recently served as managing director of MGM Mirage International in Hong Kong, heads the new Global Gaming Division.
Dubai’s investment arm was given permission to increase its ownership of MGM Mirage last week, but one of its executives said that won’t happen until market conditions warrant such a move. The Nevada Gaming Commission found Dubai World a suitable business and joint venture partner for MGM Mirage. Last year, Dubai World invested roughly USD 6 billion to acquire 9.4 % of MGM Mirage’s outstanding shares and a 50 % interest in the USD 9.1 billion CityCenter development, which is now under construction.
MGM Mirage announced it is teaming up with an Asian development company to build a "Las Vegas-style" casino in Vietnam. Asian Coast Development Ltd. will own and finance the MGM Grand Ho Tram. MGM Mirage will give development assistance and operate the resort property when it’s completed. MGM Grand Ho Tram will anchor a USD 4.2 billion resort complex being built along the South China Sea beaches about 128 km from Ho Chi Minh City.
The board of MGM Mirage Inc. appointed Jim Murren the casino operator’s new chairman and chief executive to replace Terry Lanni, the company said this week. Murren, MGM Mirage’s chief operating officer and the man largely credited with envisioning its USD 9.2 billion CityCenter complex now under construction on the Las Vegas Strip, will take over the top spot December 1, the company said.
Atlantic City - The construction tsunami that was meant to bring a classy luster to this place has slowed to a trickle thanks to the credit crisis. While a new USD 3.5 billion casino is starting to take shape next to Showboat on the Boardwalk, it is the only one of four huge projects moving forward. Both MGM Mirage and Pinnacle Entertainment Inc. have stated publicly that their USD 5 billion and USD 2 billion casinos...
Most gaming companies are dropping expansion plans amid the economic downturn, but not MGM Mirage. The casino operator said Thursday it had agreed to provide up to USD 1.6 billion to complete its joint venture CityCenter project on the Las Vegas Strip if outside financing cannot be secured. MGM Mirage and joint venture partner Dubai World have each agreed to make additional equity contributions of up to USD 959 million, the company said in a regulatory filing.
New York - Casino stocks surged Wednesday as heavyweight MGM Mirage reported funding commitments for its CityCenter project and investors jumped back into the sector as the Federal Reserve cut a key interest rate by half a percentage point. The casino sector has been struggling as consumers continue to curb spending due to the ongoing housing downturn, diminishing credit, rising food costs and recession worries. Some companies have also had to delay or cancel development projects due to funding difficulties.
With US consumers struggling to pay mortgages, pay off credit cards and fill up their gas tanks, there appears to be little left over for discretionary spending. Goldman Sachs applied this reasoning to the casino sector, cutting its price targets on several big name gambling-related companies. "We would acknowledge that in a consumer-led recession casinos’ top lines will come under pressure, but we do not think consumers will stop completely...
Biloxi - Beau Rivage Casino announced layoffs this week of an undisclosed number of employees, primarily assistant managers and managers. "In light of the current economic environment that we are all currently experiencing, Beau Rivage has had to make tough decisions, not unlike other companies," Beau Rivage President George Corchis said. "We continuously evaluate our business and make appropriate efficiencies when needed."
