May 13, 2009 (FinancialWire) — MGM Mirage (NYSE: MGM) has launched an underwritten public offering of 81 million shares of its common stock. Merrill Lynch & Co. (NYSE: MER), Deutsche Bank Securities (NYSE: DB), J.P. Morgan (NYSE: JPM), Morgan Stanley and UBS Investment Bank are acting as joint book-running managers

The company said it expects to see gross proceeds of around $1 billion. The underwriters for the offering will have a 30-day option to purchase up to an additional 12.15 million shares of common stock from MGM Mirage to cover over-allotments.

Tracinda Corp., which holds around 53.8% of MGM Mirage’s common stock, has indicated that it plans to purchase from the underwriter around 8.1 million of the shares sold in the offering, according to MGM Mirage.

MGM Mirage plans to use the net proceeds from the offering, together with the net proceeds of a concurrent offering of senior secured notes, and to repay not less than $750 million of the outstanding amount under its senior credit facility.

It also plans redeem all of the 7.25% senior debentures due 2017 of Mirage Resorts, purchase all of the company’s 6% senior notes due 2009 and all of the 6.50% senior notes due 2009 of Mandalay Resort Group tendered in pending tender offers, and for general corporate purposes.

Las Vegas-based MGM Mirage has holdings in gaming, hospitality and entertainment. The company owns and operates 16 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, New Jersey, Illinois and Macau.

The company plans to open CityCenter, a joint venture between MGM Mirage and a subsidiary of Dubai World, on the Las Vegas Strip in late 2009. The company’s hospitality unit has entered into management agreements for future casino and non-casino resorts in the People’s Republic of China, Abu Dhabi, U.A.E. and Vietnam.

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