57 Notes to Consolidated Financial Statements terms. Also in 2004, the Company issued $550 million of 6.75% senior notes due 2012 through a Rule 144A offering which were subsequently exchanged for regis- tered notes with identical terms. Also in 2004, the Company issued $450 million of 6% senior notes due 2009 through a Rule 144A offering which were subsequently exchanged for registered notes with identical terms. The proceeds of the above offer- ings were used to reduce outstanding borrowings under the Senior Credit Facility. as fair value hedges, with total notional amounts of $100 million, leaving interest rate swap agreements with total notional amounts of $100 million remaining as of December 31, 2004. At December 31, 2004, the fair value of the interest rate swap agreements was a liability of $0.1 million.  In August 2003, the Company’s Board of Directors authorized the repurchase of up to $100 million of the Company’s public debt securities. Subsequently, the Company repurchased $25 million of its senior notes. The Company recorded a loss of $3 mil- lion related to repurchase premiums and unamortized debt issue costs. In 2004, the Company repurchased an additional $49 million of its senior notes for $52 million. This resulted in a loss on early retirement of debt of $6 million, including the write-off of unamortized original issue discount, classified as “other, net” in the accompanying consolidated statements of income. In December 2004, the Company’s Board of Directors renewed its authorization for up to $100 million of additional debt securities. The Company attempts to limit its exposure to interest rate risk by managing the mix of its long-term fixed rate borrowings and short-term borrowings under its bank credit facilities. In 2003, the Company entered into three interest rate swap agreements, designated as fair value hedges, which effectively converted  $400 million of the Company’s fixed rate debt to floating rate debt. In 2004, the Company terminated interest rate swap agreements with total notional amounts of $400 million and entered into additional interest rate swap agreements, designated The Company and each of its material subsidiaries, excluding MGM Grand Detroit, LLC and the Company’s foreign subsidiaries, are directly liable for or uncondition- During 2001 and 2002, the Company entered into several interest rate swap  agreements, designated as fair value hedges, which effectively converted a portion of the Company’s fixed rate debt to floating rate debt. By the second quarter of 2002, the Company had terminated these interest rate swap agreements. The Company received net payments totaling $11 million during 2001 and 2002 upon the  termination of these swap agreements. These amounts have been added to the  carrying value of the related debt obligations and are being amortized and recorded as a reduction of interest expense over the remaining life of that debt.  Under the terms of the interest rate swap agreements, the Company makes  payments based on specified spreads over six-month LIBOR, and receives payments equal to the interest payments due on the fixed rate debt. The interest rate swap agreements qualify for the “shortcut method” allowed under Statement of Financial Accounting Standards No. 133, which allows an assumption of no ineffectiveness in the hedging relationship. As such, there is no income statement impact from changes in the fair value of the hedging instruments. Instead, the fair value of the instruments is recorded as an asset or liability on the Company’s balance sheet, with an offsetting adjustment to the carrying value of the related debt. The Company received $5 million upon termination of swap agreements in 2004, which has been added to the carrying value of the related debt obligations and is being amortized and recorded as a reduction of interest expense over the remaining life of that debt.  The Company established a commercial paper program during 2001 that provides for the issuance, on a revolving basis, of up to $500 million of uncollateralized short-term notes. The Company is required to maintain credit availability under its Senior Credit Facility equal to the outstanding principal amount of commercial paper borrowings. No commercial paper borrowings were outstanding at December 31, 2004 or 2003.