Notes to Consolidated Financial Statements68
NOTE 18 — SUBSEQUENT EVENT
Redemption of Senior Notes. In January 2005, the Company announced that it
had called all of its outstanding 6.875% Senior Notes due February 2008 for
redemption. The notes were redeemed at the present value of future interest pay-
ments plus accrued interest at the date of redemption. The Company recorded a
loss on retirement of debt of $20 million in the first quarter of 2005. As a result of
the redemption of the February 2008 Senior Notes and the repayment of the $300
million 6.95% Senior Notes that matured in February 2005, the Company applied
for, and received, release of collateral under its Senior Credit Facility and senior
notes. Therefore, the Company’s Senior Credit Facility and senior notes are now
unsecured, but are still subject to guarantees by the Company and each of its
material subsidiaries, excluding MGM Grand Detroit, LLC and the Company’s
foreign subsidiaries.