Under the terms of the credit amendment entered into last month, MGM used the funds raised to prepay approximately $820 million in loans as well as related fees and expenses.

The prepayment allowed the gaming company to meet a required 20% reduction to credit exposure of lenders as well as restate a senior credit agreement extending $3.6 billion worth of the debt to February 2014.

Over all the casino operator owes approximately $13 billion in debt.

The secured notes due 2020 are secured by a mortgage on the MGM Grand Las Vegas and substantially all existing and future properties owned by MGM Grand Hotel, LLC and a pledge of the limited liability company interest in MGM Grand Hotel, LLC.

The gaming venue is a 50-50 venture between MGM Mirage and Boyd Gaming, who have the first right of refusal regarding the new owners.

Under the terms of the settlement, MGM will place its interest in the property and related land in a divestiture trust; however they will remain the sole beneficiary.

The settlement mandates the sale of the trust within 30 months.

The settlement is a response to the agencies recommendation that MGM Mirage sever ties with their Macau partner in order to hold on to their New Jersey gaming license.

Last year that recommendation was made in a confidential report that was made public on Wednesday.

The report alleged that Pansy Ho’s relationship and financial ties to her father, as well as “her associations with persons alleged to be associated with organized crime render her susceptible to influence by unsuitable persons” and that MGM’s conduct in pursuing and consummating the Macau joint venture “raises concerns about its commitment to corporate regulatory integrity.”

Chief Executive Jim Murren responded to the report by saying “The DGE’s (Division of Gaming Enforcement) report acknowledges there is no evidence that Pansy Ho has engaged in any wrongdoing or been accused of any illegal activity.”

Bible was elected to the board during the March 8, 2010 board meeting.

The casino operator said that Bible will resign from his role as President of the tourism lobbying group Nevada Resort Association effective immediately to avoid any conflict of interest.

Resort Association Chairman Keith Smith said Bible will be leaving immediately but will assist in the transition to name his replacement.

Bible has headed the group for more than a decade and previously served as chairman of the Nevada State Gaming Control Board as well as several other positions in state government organizations.

Bible’s appointment is subject to regulatory approval.

“Bill’s wealth of expertise and familiarity with a wide range of financial and regulatory matters in both hospitality and gaming will serve as a tremendous asset to our company,” MGM Mirage Chairman and Chief Executive Officer Jim Murren said in a statement Tuesday.

The prestigious title was awarded MGM after being ranked by their industry peers for social responsibility, product quality and global competitiveness.

MGM is one of only two gaming companies to make the cut this year, but marks the ninth year being named.

“We are pleased to be recognized by our business peers as one of the leading companies in the hospitality industry,” said James J. Murren, Chairman and Chief Executive Officer of MGM MIRAGE. “Our ranking is testament to all of the hard work that our 62,000 employees do each day to ensure that we consistently deliver the highest quality products to each and every customer.”

Shares of MGM Mirage decreased 3.56% to $11.38 on 18.13 million shares yesterday, after the company which owns the City Center project in partnership with Dubai World, disclosed the threatened mechanics’ lien in a filing to U.S. regulators on Friday.

The primary general contractor, Perini Building has notified City Center’s co owners MGM Mirage and Dubai World of their intent to file a mechanics lien for $492 million for unpaid construction fees.

However the casino operator claims that the contractor has not been paid due to construction defects in the projects Harmon Tower.

An investigating is being conducted to determine the amount the contractor should be liable for.

“City Center believes that its actual obligation to the general contractor is substantially less than the amount claimed and that it is also entitled to significant offsets against the claimed amount,” MGM said in its filing.

During construction of the Harmon Tower, it was discovered that reinforcing bars had been improperly installed on some floors, resulting in the tower being reduced from the original 49 story plan. The Tower remains unopened as construction has not been resumed.

MGM stated that the indent to pursue all of their rights and remedies, including arbitration.

In the meantime, a six month amendment to the company’s credit facility has been obtained to cover the amount of the threatened liens.

An earlier investigation resulted in the DGE recommending that the Casino Control Commission direct the company to disengage itself from any business association with its Macau partner after finding Pansey Ho to be an unsuitable partner.

“We have the utmost respect for the DGE but disagree with its assessment of our partner in Macau,” said Jim Murren, Chairman and Chief Executive Officer. “Regulators in other jurisdictions in which we operate casinos have thoroughly considered this matter and all of them have either determined that the relationship is appropriate or have decided that further action is not necessary. Since the DGE takes a different view, we believe that the best course of action for our company and its shareholders is to settle this matter and move forward with the compelling growth opportunities we have in Macau.”

The settlement is subject to approval by the New Jersey Casino Control Commission who is expected to hold a hearing on the matter on March 17, 2010.

If the settlement is approved, MGM will cease doing business as a gaming license in New Jersey.

MGM’s 50% interest in the property and leased land will be placed in a divestiture trust, to be sold within a 30 month period.

MGM MIRAGE will be the sole economic beneficiary of the trust and will be permitted to reapply for a New Jersey gaming license beginning 30 months after the completion of the sale.

The notes will be secured by a mortgage on the MGM Grand Las Vegas and substantially all existing and future properties owned by MGM Grand Hotel, LLC and upon receiving necessary gaming approvals, a pledge of the limited liability company interest in MGM Grand Hotel, LLC.

The transaction is expected to close on March 16, 2010, with net proceeds being used to repay a portion of the outstanding indebtedness under its senior credit facility and related fees and expenses.

Chief Executive Officer Jim Murren said that he was confident that the IPO to sell shares of its Macau casino would be completed in the third quarter “probably in the August, September time frame”.

“We can work on our time frame,” Murren said. “Rates are fairly attractive right now and that will push out another big part of our debt into 10-year paper, plus will give us more flexibility in the near term”.

Murren told reporters that they plan to sell $850 million in secured bonds between now and June; a move approved by lenders last week when the gaming companies credit facility was amended and extended.

He also said that they have already selected lead underwriters though declined to name them yet.

Gross revenue at Macau’s casinos increased 10 percent to a record of more than 119 billion patacas ($14.9 billion) in 2009, according to government data.

Lenders representing $4.37 billion of the $5.55 billion credit facility agreed to extend the maturity date from October 2011 to February 2014.

However, the gaming company will have to pay the $1.2 billion it owes to lenders who didn’t agree to the extension, on time.

Under the terms of the deal, MGM will pay extension fees and a 1% point increase in the interest rate to lenders represented in the agreement.

As well as make a 20% cut in credit exposures to the lenders and the credit line would be re-tranched so that about $1.4 billion of revolving loans will be converted into term loans, leaving a revolving credit commitment of about $2 billion with approximately $400 million maturing in 2011.

“This amendment underscores the tremendous confidence our bank group has in our company,” said Chairman and Chief Executive Jim Murren. “The transaction provides us with additional long-term financial flexibility and reflects our continued commitment to strengthen our financial position.”

Last week the gaming company released fourth quarter 2009 financials at a loss of $433.90 million or $0.98 a share, after absorbing $1.2 billion in write downs the loss narrowed to $0.21 a share.

The investment firm maintains a “Buy” rating given the potential for Vegas to recover with strong corporate travel trends and the news that MGM will amend and extend its revolving credit facility and pursue other liquidity events to strengthen the balance sheet.

However Goldman lowered its 12-month price target from $16 to $14.50 and raised its loss estimated for FY10 from a loss of $0.53 to a loss of $0.71.

Goldman anticipates MGM Mirage to continue to post financial losses until 2012 under continued “intense pressure” on room rates.

MGM stock dropped $0.77 on Friday to $10.86 from Thursday’s closing price of $11.63.

MGM reported that occupancy rates at their casino resorts on the Vegas strip rose 86% however the daily rate dropped by 18% due to heavy discounting, as well as a 8.9% decrease in Food and Beverage sales.

“We have profoundly improved our cost structure and are actively building revenue to maximize operating leverage as the economy shifts into recovery mode,” said Chairman and Chief Executive Jim Murren.

Expenses for the quarter were down to $1.96 billion from $2.68 billion a year earlier.

While analysts estimated that the gaming company would report a loss of $0.13 per share, MGM posted a loss of $0.98 a share or $433.9 million.

After the $1.2 billion in write downs including an impairment charge on the value of the companies undeveloped Atlantic City property the loss was $0.21 a share.

The tribe has made a payment of $13.1 million to the State of Connecticut from January revenue to increase total contribution to approximately $2.9 billion since the introduction of slot machines at Foxwoods in 1993.

MGM joined forces with the tribe in 2008 by adding 825 guest rooms, 115,000 square feet of meeting space, a 4,000-seat MGM Grand Theater, a 21,000-square-foot spa, and more dining, retail, and gaming facilities bolstering Foxwoods’ preeminence as the East Coast’s ultimate casino resort destination.

MGM receives continuous revenue from the resorts operations through brand licensing and consulting fees.

Despite the slight decreases, Foxwoods and MGM Grand at Foxwoods continue to outpace the national gaming industry, maintaining a competitive advantage over other major gaming destinations including Las Vegas and Atlantic City which sustained year-over-year revenue declines of nearly 10%.

“We are very pleased to announce the latest evolution of our marketing program, which adds the strength of business analytics to our strategic plan,” said Bill Hornbuckle, MGM Mirage Chief Marketing Officer.

ESS will use analytical methodologies and techniques to support strategy and operational improvements and combine with A.T. Kearney’s use of strategic insight and tailored solutions to create innovative marketing solutions based on MGM’s database of over 60 million customers.

“This initiative increases our ability to cater to our guests’ personalized needs with a one-to-one marketing outreach.”

The partnership has been formed to fully capitalize on advanced analytic software to produce a single, cohesive view of information via a method that is quickly increasing in popularity among members of the gaming community.

Advanced analytics allows casino operators to make more efficient business decisions by combining customer insights with factors such as company culture, operational objectives and performance standards.

“This effort is focused on enhancing our cost-effectiveness behind the scenes, but more importantly streamlining our customer rewards program to deliver more value to our guests and to expose them fully to the depth of the offerings at the extensive portfolio of MGM MIRAGE properties.” said Hornbuckle.

The Chinese gaming enclave has been used as a marketing tool to entice high rollers to Las Vegas, where properties have been decorated with festive scenery for the potentially lucrative two-week period.

“Clearly there is a financial importance to the event,” said Greg Shulman, vice president of international marketing for Bellagio. “One only needs to look at the Gaming Control Board’s baccarat numbers for the month to see that.”

At the Bellagio elaborate decorations guided by the ancient Chinese practice of Feng Sui line the resorts prominent conservatory and botanical gardens.

At the City Center, special menus have been planned, performances from Hong Kong pop and film star Sam Hui and a private gala for 3,000 VIP’s.

“For the first time in many years, we have a brand new facility to show off. We expect our volume to be up and I think the anticipation of Aria has a lot to do with that,” Shulman said.

Last quarter the gaming company reported Earnings per Share of $0.01, topping consensus estimates for a loss of $0.08 per share.

For the fourth quarter analysts expect the company to report a loss of $0.12 per share and a full year loss of $0.35 per share.

MGM stock has slowly been dropping, opening the market today at $10.81 down $0.33 from February’s opening price of $11.14.

The stock hit a high for the month on February 2 at $12.03 and a low of $11.35 on February 3.

The gaming company released a statement on Monday saying that they have been discussing placing its 50% stake in the casino into a divestiture trust for which MGM Mirage would be the sole economic beneficiary.

The states Casino Control Commission have been questioning MGM’s Macau partnership with Pansey Ho, due to reports that her father has had ties to the Chinese Mob.

After MGM refused to cut ties with her, they began looking into selling its shares of the Borgata, however while no definitive settlement has been reached, MGM has asked lenders to consent to the trust arrangement.

“We disagree with the New Jersey Division of Gaming Enforcement’s recommendation to the Casino Control Commission concerning our Macau partner, but believe pursuing a settlement with the DGE represents the best course of action for our company and its shareholders.” MGM Mirage Chief Executive Jim Murren said in the statement.

If a settlement can be reached, final approval would be needed by New Jersey gaming officials.

“We would like to put this matter behind us and move forward with the compelling growth opportunities we have in Macau.” Murren said.

The gaming company donated objects formerly on display in the King Tut Museum & Tomb at the Luxor Las Vegas including the world-famous guardian statues, King Tut’s sarcophagus and an array of statues, vases, baskets and pottery.

“The generosity of MGM MIRAGE- will benefit our community and the thousands of children and families who visit the Museum annually for many years to come,” said Marilyn Gillespie, executive director of the Museum.

“As a zealous supporter of arts in this community, MGM MIRAGE is delighted that this exhibit is staying right here in Las Vegas,” said Felix Rappaport, president and chief operating officer of Luxor and Excalibur.

The casino giant is looking to extend its maturity date from October 2011 to February 2014 and issue approximately $800 million of secured notes.

MGM sent out the amendment and extension request on Wednesday, with responses due by February 16th.

Approximately 72% of the gaming company’s lenders votes had been gathered before the request.

Those consenting to the amendment would receive a 5 basis point fee.

Lenders agreeing to an extension would get a 70 basis point fee and a par pay down equal to 20% of their commitments, which would be increased by 1% for each additional full percentage point of participation, with a maximum of a 25% reduction.

Reuters Loan Pricing Corporation reported that pricing on the extended portion would be increased by 100 basis points to LIBOR plus 500.

The $5.55 billion deal is made up of a $3.43 billion revolving credit facility and a $2.12 billion term loan.

Under the terms of the amendment the revolver will be “re-tranched”, both non-extended and extended portions will be split into a new revolver and a new term loan.

MGM lost the Mosley-Berto fight that was scheduled for this week at the Mandalay Bay after Berto pulled out two weeks ago and the “fight of the century” between Mayweather and Pacquiao that would have been scheduled for March 13 and the Grand Garden.

Although 2010 boxing events were off to a rough start when those fights were called off, MGM Grand will now host the match between welterweight superstars Floyd Mayweather Jr. and Shane Mosley on May 1.

Mosley signed the contract on Friday and Mayweather’s signature is imminent, representatives from both parties said there are no issues.

Richard Sturm, president of entertainment and sports for the casino operator, was happy to see something positive happen.

“We never wavered in the least,” Sturm said. “Boxing is fantastic for the company, and even though losing a couple of fights was disappointing, we’re excited about the coming months. I still think 2010 will be a big year for boxing in Las Vegas.”

Jim Murren, chairman of MGM Mirage, announced the move in his keynote speech at Preview Las Vegas, an economic-forecasting event the chamber holds every January saying that they are rejoining the state’s largest trade association to create a unified front against a looming state legislative session that promises pitched battles over budgets and taxes.

“The gaming sector is undoubtedly an unquestionably crucial component of the Las Vegas economy,” Murren said. “But gaming cannot go its own way in seeking solutions for Nevada’s problems. We must redefine the relationship between gaming and the larger business sector and reject the ‘us vs. them’ mentality that has crippled this community for so long.”

In 2003 The casino operators’ then-Chairman Terry Lanni withdrew the company from the group after differing ideas on a new business tax.

“We won’t all agree on every element of the solution, but certainly we can all agree that we must work together to define our objectives, generate an agenda, craft a plan of action and then pledge our resources to promoting the promise of progress.”

MGM Mirage’s decision will let Nevada’s largest business interests present a united front before Gov. Jim Gibbons as they address the current budget shortfall.