MGM Financing Uptick Just the Beginning

MGM Mirage (MGM) popped $1.71, or about 4.7%, to $35.19 mid-day Friday after news that it had secured $2.3 billion of the remaining $3 billion needed for its CityCenter project on the Vegas Strip. According to Reuters, MGM received a commitment for $300 million from China Construction Bank following a recent $150 million from tree other banks and $100 million from a fifth bank. The commitments squash liquidity and financing fears that have plagued the casino operator for months and should pave the way for Dubai World to raise its stake in the company from 9.4% to as much as 20%. In other words, the news is worth more than a buck and a half of upside on the stock.