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.