ityCenter Holdings, a 50-50 partnership between MGM Resorts and Dubai World, said the notes won't be registered under the Securities Act of 1933, and therefore can only be sold to institutional buyers outside the United States.
CityCenter plans to use the net proceeds from the offering "to reduce its obligations under its existing credit facility in connection with amending and restating the credit facility to, among other things, extend the maturity of the remaining loans for four years," MGM Resorts said.
MGM Resorts and Dubai World have for months been studying ways to fix the us$ 8.7 billion Las Vegas resort’s financial problems and meet the terms of its loans.
According to a report in the Wall Street Journal, the partners studied but ultimately rejected closing two of CityCenter's three hotels and the "Viva Elvis" Cirque du Soleil show at the Aria Resort and Casino.
The newspaper, citing documents from board meetings, said the partners had also outlined a plan to seek relief on the terms of the complex's us$ 1.8 billion loan, which requires the joint venture to earn far more cash than currently seems feasible. If they can't renegotiate the terms, CityCenter could be in default on the loan this summer, the Wall Street Journal said.
CityCenter, which sits on 67 acres and is one of the largest construction projects in U.S. history, opened at the height of the economic downturn that hit Las Vegas particularly hard.
During the first three quarters of 2010, MGM Resorts reported CityCenter had a net loss of nearly us$ 1 billion.
