he company believes that these facilities provide all of its outstanding funding requirements for the current project development pipeline, including City of Dreams and the Macau peninsula development project.
The new loan facilities will allow the company to retire its existing committed but undrawn borrowing arrangements. The new facilities will be denominated in Hong Kong and/or United States dollars and provide both substantially improved pricing terms and increased flexibility as compared with the us$ 1.6 billion facility committed in September 2006. The Coordinating Lead Arrangers of the new facilities are ANZ, Bank of America, Barclays Capital, Deutsche Bank AG and UBS AG.
The new financing is comprised of us$ 2.5 billion of term loan facilities and a us$ 250 million revolving credit facility. The term loan facilities mature in seven years, with the new revolving credit facility maturing in five years. At peak borrowing levels, the Company expects to maintain its industry-leading debt to equity ratio.
Simon Dewhurst, Executive Vice President and CFO, said, "The banks' commitment to provide us with the new credit facilities is a major milestone for our Company and its shareholders, as it secures the necessary financial capital to fully fund our existing development pipeline in Macau. The new facilities clearly demonstrate the confidence held by these leading financial institutions in the Company and its management team.
"We have successfully secured all capital resources necessary to build Melco PBL Entertainment into a leading participant in the gaming industry in Macau."
Based on its confidence in the expected demand for vacation accommodation in Cotai and Macau in general, the company has committed to developing a significantly expanded serviced apartment hotel complex comprising nearly 650 units and integrated into the existing footprint of City of Dreams. The serviced apartment hotel units will enjoy a pre-eminent location in Cotai with un-paralleled views of the Cotai Strip and will be marketed accordingly.
The total cost of design, construction and fit-out of the serviced apartment hotel complex is estimated at approximately us$ 353 million. This represents a significant change in scope as compared with the earlier plan for a more modest apartment hotel development budgeted to cost approximately us$ 96 million. The net capital investment at City of Dreams will be substantially reduced by the proceeds derived from this serviced apartment hotel development.
In conjunction with the negotiation of the new credit facilities and as previously indicated, the company has completed its project and program review for City of Dreams.
Primarily as a result of an increase in the scope of the project, the estimated design, construction and fit-out cost for City of Dreams is now approximately us$ 1,849 million, an increase of approximately 23% from the previous estimate of us$ 1,500 million. This increase in budgeted cost is in-line with the increase in the related gross floor area under development.
The first phase of City of Dreams is planned to be formally open to the public by the end of March 2009. It consists of substantially all of the 39,019 sqm casino and approximately 7,896 sqm of retail space, as well as the 366-room Hard Rock Hotel and the 295-all-suite Crown Towers Hotel, Cotai.
The 1,005-room Grand Hyatt Macau twin-tower hotel is scheduled to open in September 2009. The relevant agreements are being amended to reflect the decision to use the Grand Hyatt brand for both towers.
The theatre will house a brand-new live stage show production created exclusively for the Company by Dragone Entertainment, headed by Franco Dragone, the producer of some of the most spectacular theatre based production shows ever created.
World-class and truly unique entertainment attractions, anchored by live performances at the Theatre of Dreams, will ensure that the City of Dreams is a must-visit resort for any tourist or conventioneer visiting Macau from throughout the world.
The total projected cost to design, build and fit-out the 1,700-seat venue is estimated at us$ 169 million, an increase of us$ 148 million from the previously reported budget. The Theatre of Dreams is scheduled for completion in the first quarter of 2009. Opening night is expected before year-end 2009 following four to six months of rehearsals.