MGM Mirage profit falls 68.6%
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Shares in MGM Mirage Inc. surged after the company said it had secured commitments for $1.65 billion of the final $3 billion in financing for CityCenter, its next major casino project on the Las Vegas Strip.
The company said last week that a deal was delayed because of tight financial markets. Executives had expected the deal to be in place in June or July but said Tuesday that it would be done in the third quarter.
MGM Mirage shares leaped $4.85, or 15.7%, to $35.85 the same day the company reported a 68.6% drop in second-quarter profit.
The Las Vegas-based casino operator’s net income fell to $113.1 million, or 40 cents a share, from $360.2 million, or $1.22, a year earlier. Revenue declined 2% to $1.9 billion.
Chief Executive Terry Lanni said MGM Mirage and partner Dubai World were able to hold out for better interest rates by paying for construction costs themselves -- about $200 million a month since November, when Dubai World bought into the CityCenter project.
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