LOS ANGELES (Reuters) - MGM Mirage (MGM.N), the casino operator that has struggled to avoid defaulting on its $14 billion debt load, said on Wednesday lenders have agreed to let it raise up to $2.5 billion by selling new stock and bonds.
The news sent shares of Las Vegas-based MGM down about 23 percent, but its bonds surged.
MGM said it would privately place $1.5 billion worth of senior secured notes and aimed to raise about $1 billion in a public offering of 81 million shares. It plans to use the proceeds to pay off more than $1 billion of debt that matures later this year and at least $750 million of a credit line.
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