EXHIBIT 99
[LETTERHEAD OF MGM GRAND INC.]
FOR IMMEDIATE RELEASE
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CONTACT: MGM Grand: Mirage Resorts:
- ------- James J. Murren Alan Feldman
President and Vice President of
Chief Financial Officer Public Relations
(702) 891-3344 (702) 693-7147
MGM GRAND TO ACQUIRE MIRAGE RESORTS
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FOR $21 PER SHARE IN AN ALL CASH TRANSACTION
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Las Vegas, Nevada, March 6, 2000 -- MGM Grand, Inc. (NYSE:MGG) and Mirage
Resorts, Incorporated (NYSE:MIR) today announced that their respective Boards of
Directors have approved a definitive merger agreement, under which MGM Grand
will acquire all of the outstanding shares of Mirage Resorts for $21 per share
in cash. The transaction will have a total equity value of approximately $4.4
billion. In addition, MGM Grand will assume the outstanding debt of Mirage
Resorts of approximately $2.0 billion.
The transaction is subject to the approval of Mirage shareholders and to the
satisfaction of customary closing conditions contained in the merger
agreement, including the receipt of all necessary regulatory and governmental
approvals. The transaction will be accounted for as a purchase; the companies
anticipate the transaction will be completed during the fourth quarter of 2000.
MGM Grand expects that the acquisition will be accretive to earnings per share
immediately, and increasingly accretive in subsequent years. The Company noted
that it has financing commitments to fund the entire acquisition cost, and is
committed to maintaining the strongest possible balance sheet. Accordingly, MGM
Grand contemplates a capital structure that preserves its investment grade
rating, and expects that combined debt levels will be reduced through free cash
flow and the sale of non-strategic assets.
J. Terrence Lanni, Chairman of MGM Grand, said, "As a result of this
acquisition, MGM Grand will have achieved a dream combination of assets and
people, a combination that creates unquestionably the premiere company in the
gaming industry. This transaction provides Mirage
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shareholders with a significant premium for their shares. We strongly believe
that the revenue enhancements and cost reduction opportunities arising out of
this acquisition will create a meaningful increase in the value of MGM Grand
stock."
Stephen A. Wynn, Chairman, President and Chief Executive Officer of Mirage
Resorts, said, "This extraordinary transaction fully embraces the value of the
franchise created by each of the Mirage properties and the contribution made by
the 32,000 individuals who are responsible for that franchise."
MGM Grand expects significant cost savings to be achieved primarily through
increased purchasing power and the avoidance of duplicate facilities and
functions. In addition, substantial revenue growth is anticipated from the
unparalleled array of accommodations, entertainment, dining, shopping, gaming,
and sports and leisure experiences that will be available to the Company's
customers and guests.
The acquisition of Mirage Resorts by MGM Grand marries the most admired assets
in the gaming industry. The Company will own and operate the finest portfolio of
14 resorts including, in Nevada: MGM Grand - "The City of Entertainment",
Bellagio, Mirage, New York - New York, Treasure Island, a 50% interest in Monte
Carlo, Golden Nugget - Las Vegas, Whiskey Pete's, the Primm Valley Resort,
Buffalo Bill's, and Golden Nugget - Laughlin; in Detroit: MGM Grand Detroit
Casino; in Mississippi: Beau Rivage; and in Australia: MGM Grand Darwin. This
stellar collection of trophy properties, along with the extensive undeveloped
acreage in Nevada, New Jersey, and Mississippi, provides the Company with
outstanding growth opportunities in the future.
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MGM Grand, Inc. is an entertainment, hotel and gaming company headquartered in
Las Vegas, Nevada. MGM Grand, Inc. owns and operates: the MGM Grand Hotel and
Casino - The City of Entertainment and New York - New York Hotel and Casino both
located in Las Vegas; Whiskey Pete's, Buffalo Bill's and the Primm Valley Resort
in Primm, Nevada; the MGM Grand Detroit Casino in Detroit, Michigan; the MGM
Grand Hotel and Casino in Darwin, Australia; manages casinos in Nelspruit,
Witbank and Johannesburg, Republic of South Africa; and owns two championship
golf courses at the California/Nevada stateline. MGM Grand is in the early
stages of developing a permanent hotel and casino complex in Detroit, Michigan.
The Company also has announced plans to develop a hotel and casino resort in
Atlantic City, New Jersey. For more information on MGM Grand, Inc., visit our
website at http://www.mgmgrand.com.
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Mirage Resorts, Incorporated is a leading owner, developer and operator of
casino-based resorts. The Company owns and operates five casinos in Nevada: the
Bellagio, Mirage, Treasure Island, Golden Nugget - Laughlin, and the Beau Rivage
casino in Biloxi, Mississippi. Mirage also owns the Holiday Inn Casino Boardwalk
and has a 50% interest in the Monte Carlo Resort & Casino. For more information
on Mirage Resorts, Incorporated, visit our website at http://www.mirage.com.
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Statements in this release which are not historical facts are "forward looking"
statements and "safe harbor statements" under the Private Securities Litigation
Reform Act of 1995 that involve risks and/or uncertainties, including risks
and/or uncertainties as described in the Company's public filings with the
Securities and Exchange Commission.
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