what if OFFERING SUMMARY
Issuer MGM MIRAGE Amount $500 Million Security Senior Unsecured Notes
Form of Offering Registered Shelf Takedown
Maturity 2016
Call Protection NC-L
Ratings Moody’s Ba2 (Negative)
S&P BB (Stable)
Repay a Portion of the Outstanding Amount Under Use of Proceeds Our $7.0 Billion Senior Credit Facility & for General Corporate Purposes Citi, Banc of America Securities LLC, Deutsche Bank Bookrunners Securities LLC, JPMorgan, RBS Greenwich Capital what if COMPANY OVERVIEW
Collection of Resorts with Worldwide Brand Recognition
Diverse Customer Base
Signature Brands Across All Business Lines
Over 46,000* Hotel Rooms, 1.8* Million Sq. Ft. of Casino, 1,600 Table Games, & 35,000* Slot Machines
2006 Net Revenue of $7.2 Billion
2006 EBITDA of $2.4 Billion
Significant Domestic & International Development Pipeline
*Excludes Primm Valley Resorts, Laughlin Properties, and Nevada Landing Q1 HIGHLIGHTS
Net Revenues up 9% to $1.9 Billion
Property EBITDA of $655 Million, up 7% Over Prior Year
Several All Time Property EBITDA Records: Bellagio, MGM Grand, Mandalay Bay, Treasure Island, and Monte Carlo
Continued Strength in Property EBITDA Margins at 34%
Repurchased 2.5 Million Shares for $175 Million
Highest Ever First Quarter Diluted EPS from Continuing Operations of $0.55 up 15%
Net Income per share of $0.57 CONSISTENT CASH FLOW PRODUCTION Property EBITDA
3 Months Ended 3 Months Ended ($ in Millions) March 31, 2006 March 31, 2007 %
Las Vegas Strip $523 $549 +5%
Other Nevada 6 (2) -133%
Detroit, MI 37 35 -5%
Mississippi 9 35 +289%
Unconsolidated Resorts 34 38 +12%
Total $609 $655 +8% CONSISTENT CASH FLOW PRODUCTION Property EBITDA
($ in Millions) LTM as of March 31, 2007
Las Vegas Strip $2,049
Other Nevada 15
Detroit, MI 149
Mississippi 181
Unconsolidated Resorts 251
Total $2,645 NET REVENUES
($ in millions) $8,000 $7,176 $7,331
$6,129 $6,000
$4,002 $4,000 $3,658
$2,000
$0 2003 2004 2005 2006 LTM 3/31/07 Source: Annual Report / 10-K. PROPERTY EBITDA
($ in millions) $3,000 $2,598 $2,645
$2,022 $2,000
$1,456 $1,179
$1,000
$0 2003 2004 2005 2006 LTM 3/31/07 Source: Annual Report / 10-K / Earnings Press Releases. CAPITALIZATION SUMMARY (as of Dec. 31, 2006)
($ in Millions) Historical Pro Forma Cash $ 452.9 $452.9 Senior Debt Senior Credit Facility $4,381.9 $3,881.9 (1) Existing Senior Notes 6,523.2 6,523.2 New Senior Notes - 500.0 (2) Total Senior Debt $10,905.1 $10,905.1 Subordinated Debt $2,089.9 $2,089.9 Total Debt (3) $12,994.9 $12,994.9 Total Leverage (4) 5.0X 5.0X (1) Pro-forma credit facility net of $500 million reduction from new note issuance. (2) Does not include fees. (3) As of 3/31/07 Total Debt is $13,240 million. (4) Leverage calculation pursuant to bank credit facility based on 2006 covenant EBITDA. LAS VEGAS REAL ESTATE
Circus Circus MGM Grand
TI Las Vegas Strip The NY Monte Luxor Mandalay Mirage NY Bellagio Carlo Excalibur Bay
Total Las Vegas Strip Acres - 865 LAS VEGAS REAL ESTATE
Circus Circus MGM TI Grand
Las Vegas Strip The Monte NY Mandalay Mirage Bellagio Excalibur Carlo NY Luxor Bay CityCenter
CityCenter 250 Undeveloped / Underutilized Acres (excluding CityCenter) INVESTING IN THE FUTURE
World-Wide Brand Recognition Newest Resort Portfolio on the Las Vegas Strip All Resorts Are Expandable Continue to Enhance the Resort Experience Strong Development Pipeline LAND PURCHASE AGREEMENTS
In April, 2007, we entered into agreements to purchase several parcels of land on the Northern end of the Las Vegas Strip $444 million purchase price for 26-acre parcel north of our Circus Circus property (expected to close in May 2007)
$131 million purchase price for 8 acres of adjacent land (closed on May 3, 2007) Circus Circus will remain as the gateway to this site and will not be impaired
Combined with the land we already own, this allows us to create a 78 acre site with about 1,600 frontage feet on Las Vegas Boulevard
CITYCENTER
67 Acre Site - Best Property in Las Vegas 4,000 Room Luxury Casino/Hotel 2 Boutique Hotels 470,000 Sq. Ft. of Retail, Dining, & Entertainment 2,700 Residential Units Total Cost of Approximately $7.4 Billion (Before Pre-Opening and Land) Estimated Residential Gross Sales of $2.7 Billion Overall Estimated Net Investment of $4.7 Billion Ownership Structure to Suit Our Cash Flow, Earnings, & Returns Expect Mid-Teen Return on Net Investment Scheduled Opening Late 2009
Hotel/Casino Veer The Harmon
Vdara Mandarin Sobella
SIGNATURE AT MGM GRAND SIGNATURE AT MGM GRAND DETROIT
MGM GRAND DETROIT
World-Class Hotel & Casino
400 Hotel Rooms & Suites 100,000 Sq. Ft. Casino Exciting Restaurant, Entertainment, & Nightclubs Total Estimated Project Cost: Construction: $725 Million Pre-opening: $30 Million Land Carry Cost: $50 Million Opening Q4 2007
MACAU
MGM GRAND MACAU
Located on Prime Site
Unique Three Strata Iconic Tower
375 Table Games & 900 Slot Machines
600 Rooms, Suites, & Villas
World-Class Entertainment
Signature Restaurants
Substantial Expansion Opportunity (70,000 sq. ft.)
Scheduled to Open Late 2007
STRONG FINANCIAL POSITION
Amended $7 Billion Bank Facility Maturing in October 2011
Significant Bank Capacity
Prudent Portfolio Management
Primm & Laughlin Asset Sales
$600 Million - Over 9X Multiple
Closing In Q2 2007
Proven Track Record in Re-Investing In Ourselves INVESTMENT CONSIDERATIONS
Strong Financial Position
Expect Mid-Teen ROI on Growth Capital
Distinctive Position In the Las Vegas Market with Selective Geographic Diversity
Strong Operating Margins
Significant Potential Cash Flow Generation
Desire to Remain Public Company
Strong Existing Covenant Package Guarantees – Upstream and Downstream Lien Basket – Bonds 15% NTA / Bank 10% FMV of Assets Past Practices – Mirage and Mandalay Transactions “SAFE HARBOR PROVISION”
Statements within this presentation which are not historical facts are
“forward looking” statements and “safe harbor statements” under the Private
Securities Litigation Reform Act of 1995 that involve risk and/or uncertainties, including but not limited to financial projections, state and federal regulations, construction activities and other risks described in the
Company’s public filings with the Securities Exchange Commission. what if