Replies to post #28 on MGM Resorts International (MGM)

[Teamlasvegas]

MGM Bonds Tank On Dubai Rumors


Widely-circulated rumors that Dubai World has revoked its commitment to finance MGM Mirage's CityCenter development in Las Vegas drove MGM bonds down 10 to 15 points last week. MGM bonds maturing in five to six months fell to 84-85 last Thursday morning, from 95-96 the previous week. Bonds maturing in 2010 plunged to the low 70s from 85. The drop reflects investor fear over the impact an unfinished, unfunded CityCenter would have on MGM's balance sheet, one trader said.

Infinity World Development Corp., a wholly owned subsidiary of Dubai World, is 50% owner ...