JCM Fuzion

MGM Resorts venture announces CityCenter refinancing

Wednesday, 19 April 2017 01:43

CityCenter Holdings, a venture between MGM Resorts International and Infinity World Development Corp, has announced that it has completed its refinancing transactions consisting of a new seven-year US$1.6 billion term loan and a new five-year US$125 million revolving credit facility. 

In connection with the refinancing transactions, the term loan B was issued at 99.5% of par and will bear interest at LIBOR plus 2.50%, representing a 25 basis point decrease from the prior facility, with a LIBOR floor of 0.75%. The revolving facility will bear interest at LIBOR plus 2%, unchanged from the prior facility. The revolving facility will mature in 2022 and the term loan B facility will mature in 2024.  

CityCenter used the net proceeds from the term loan to refinance the outstanding amount under its existing term loan, pay a US$350 million dividend to its members and pay related fees and expenses. CityCenter also paid its previously announced US$250 million dividend from cash on hand, resulting in an aggregate dividend of US$600 million to its members.

“We are very pleased by the overwhelming response from our lenders who continue to value CityCenter's improved operating performance, premium asset quality and strong balance sheet," said Jim Murren, Chairman and Chief Executive Officer of MGM Resorts International and Chairman of CityCenter. "Going forward, CityCenter will remain focused on executing its business plan and maximizing value for its shareholders."

CityCenter, which is 50% owned by a wholly owned subsidiary of MGM Resorts International and 50% owned by Infinity World Development Corp (a wholly owned subsidiary of Dubai World), is an urban mixed-use development on the Las Vegas Strip that includes ARIA Resort & Casino, a 4,004 room casino resort; Mandarin Oriental Las Vegas, a 392-room non-gaming boutique hotel with 225 luxury condominium residences; Vdara Hotel and Spa, a 1,495-room luxury hotel-condominium; and the Veer Towers, which contain 669 luxury condominium residences. CityCenter opened in December 2009.

 

The Philippines fights back

The Philippines fights back By Muhammad Cohen | Editor at large Muhammad Cohen also blogs for Forbes on gaming throughout Asia and wrote Hong Kong On Air, a novel set during the 1997 handover about TV news, love, betrayal, high finance and cheap lingerie.    For the Philippines, 2016 began with stolen millions from the Ba... Monday, 08 May 2017 09:00

Macau’s entertainment dilemma

Macau’s entertainment dilemma In an insightful interview, former Melco Crown Entertainment executive John Raczka explains why Macau must overcome some difficult hurdles if it hopes to fulfill the government’s dream of boasting world-class non-gaming attractions. If you ever wondered who drove the development of the cutting ed... Monday, 08 May 2017 08:50

From pachinko to sumo wrestling

From pachinko to sumo wrestling The building of a Japanese IR In the third of their five part series on the development of Japanese integrated resorts, casino and IR experts Dr Glenn McCartney and Dr Andy Nazarechuk look at the attractions a Japanese IR will need to consider if it is to thrive.  By Dr Glenn McCartney and Dr And... Monday, 08 May 2017 08:36

Spotlight on Japan

Spotlight on Japan The second Japan Gaming Congress takes place this month with leading operators, local politicians and industry experts converging on Tokyo for this landmark event.   With the eyes of the gaming world now very much focused on Japan, May sees the Grand Hyatt Tokyo play host to the second edition of... Monday, 08 May 2017 08:30