International edition
June 13, 2021

The due date on that balance has been extended to January 21, 2015

CityCenter raises us$ 1.5 billion to reduce debt

(US).- The world's most expensive casino development has raised us$ 1.5 billion to pay down existing debt. Officials for CityCenter said last Friday that the new notes and us$ 77 million in contributions from owners MGM Resorts International and Dubai World reduced the balance of its debt from us$ 1.85 billion to us$ 500 million.

T

he due date on that balance has been extended to January 21, 2015. The casino complex that cost us$ 8.7 billion to build raised us$ 900 million by selling notes due in 2016 and us$ 600 million from notes due in 2017.

The company plans to use the proceeds, plus us$ 77 million in equity contributions from its owners, to reduce the balance on its senior secured credit facilities to us$ 500 million from us$ 1.85 billion, to create an interest escrow for first lien debt, and to pay fees and expenses. The us$ 500 million balance of the senior secured credit facility will be extended to January 2015 under an amended and restated agreement.

MGM Resorts CEO Jim Murren says the financing puts CityCenter on solid ground for the long term and lets it focus on operations. The firm, in which Kirk Kerkorian is a major investor, has said the Las Vegas market is stabilizing. But the company has continued to book losses on its stake in the mammoth complex, which cost us$ 8.5 billion to build.

CityCenter is on the Las Vegas Strip, which was hit hard by the recession and slow economic recovery. CityCenter posted an operating loss of us$ 1.27 billion during the first three quarters of 2010.

Shares of MGM Resorts, which is based in Las Vegas, fell 31 cents, or 2 %, to us$ 15.01 in afternoon trading.

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