MGM Mirage to price up to $750 million five-year convertibles at 4.25%-4.75%, up 22.5%-27.5%

By Rebecca Melvin

New York, April 14 - MGM Mirage's planned offering of up to $750 million of five-year senior unsecured convertibles, announced after the market close Wednesday, were being talked to yield 4.25% to 4.75% with an initial conversion premium of 22.5% to 27.5%.

The offering was expected to price after the close of markets on Thursday, according to a syndicate source.

There will be additional notes granted to cover over-allotments.

The Rule 144A deal is being sold via joint bookrunners J.P. Morgan Securities Inc. and Bank of America Merrill Lynch, with two passive bookrunners, Deutsche Bank Securities Inc. and Barclays Capital Inc.

The bonds are non-callable for life, with no puts.

Proceeds are expected to be used to repay a portion of the company's outstanding debt under a senior credit facility.

In connection with the offering, MGM plans to enter into capped call transactions with one or more of the initial purchasers, which are aimed at reducing potential dilution of the company's common stock upon conversion of the notes.

Las Vegas-based MGM is a casino resort owner and operator.

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