Kerkorian to buy more MGM Mirage shares

As expected, 91-year-old Los Angeles billionaire Kirk Kerkorian, the majority shareholder in MGM Mirage, said he would purchase 14.3 million shares of the casino operator for $7 a share.

In a filing with the Securities and Exchange Commission Monday, Kerkorian said the shares would be bought through Tracinda Corp., his privately held investment arm.

The transaction is part of MGM Mirage’s restructuring plan in which the company will raise $2.5 billion by selling new stock and bonds. Last week, MGM Mirage said it had completed a $1 billion public offering through the issuance of 143 million shares. The casino operator was taking steps to avoid defaulting on more than $14 billion in long-term debt.

Kerkorian had agreed to purchase 10 percent of the new shares.

Prior to the restructuring plan, Kerkorian’s stake in MGM Mirage was 53.8 percent.

Tracinda intends to use a credit facility to fund this purchase, according to the filing, and has agreed not to sell or transfer shares during the next 60 days, with limited exceptions.