MGM MIRAGE, Dubai World and CityCenter's Lenders Reach Agreement for Completion of CityCenter
29 Abril 2009 - 5:59PM
PR Newswire (US)
Project Receives Approval for Full Financing LAS VEGAS and DUBAI,
United Arab Emirates, April 29 /PRNewswire-FirstCall/ -- MGM MIRAGE
(NYSE:MGM) and Dubai World through subsidiary Infinity World, 50/50
joint venture partners in the CityCenter project, today announced
that the companies have reached an agreement on a revised joint
venture agreement and also reached an agreement with CityCenter's
lenders on a comprehensive plan to fully fund the completion of
CityCenter for its scheduled opening later this year. Under the
plan, Dubai World and MGM MIRAGE will fund their remaining equity
contributions to CityCenter through letters of credit. In addition,
CityCenter's lenders will immediately fund the full $1.8 billion
senior secured credit facility. Additionally, Dubai World will
dismiss its lawsuit filed against MGM MIRAGE in Delaware Chancery
Court on March 22, 2009, and Dubai World and MGM MIRAGE will
exchange mutual releases. "We are pleased that MGM MIRAGE and Dubai
World, with the strong support of CityCenter's lenders, have agreed
to a comprehensive plan for the financing and completion of
CityCenter," said Jim Murren, Chairman and CEO of MGM MIRAGE and
Chris O'Donnell, Dubai World's Director of the CityCenter joint
venture. "CityCenter is now fully funded and on track to open in
December 2009," they said. "CityCenter will be unlike anything
anyone has seen in Las Vegas or anywhere else. We are confident in
the potential of CityCenter to contribute significantly to our cash
flow," said Mr. Murren. "CityCenter is a powerful engine for growth
and employment in Las Vegas and Nevada. With all funding in place,
we will focus, along with our partner, on planning for an exciting
opening in December and continuing to book rooms and conventions.
We appreciate greatly the strong support of our lenders, who share
our vision as to the importance of this project to the Las Vegas
community and the entire state of Nevada." Mr O'Donnell said, "This
agreement provides a stable financial framework for one of the most
exciting destination resort development projects ever to be
constructed. MGM MIRAGE is the industry's premier luxury hotel,
resort and casino developer and operator. We believe CityCenter has
a bright future and will benefit both the partners and the local
economy, and we look forward to working with MGM management to
realize that potential." Key terms of the various agreements
include: -- MGM MIRAGE will be responsible for completion costs to
the extent net condominium proceeds are less than $243 million and
for completion costs in excess of the current budget of $8.5
billion. -- Dubai World has agreed to fully fund its original
sponsor contributions to CityCenter, including $135 million in
payments previously funded by MGM MIRAGE on Dubai World's behalf.
Dubai World is relieved of all completion guarantees. -- Until the
completion of CityCenter, MGM MIRAGE's obligations with respect to
additional construction costs, if any, will be supported by the
assets of Circus Circus Las Vegas and certain adjacent land through
a completion guarantee. -- The CityCenter credit facility has been
amended as part of the global financing plan. Such amendments
include: -- The facility will mature on June 30, 2012. -- The
interest rate margin was increased by 2.00%, though such amount is
"pay in kind" through September 2010, with additional periodic
margin increases through the term of the facility. -- Condominium
proceeds of up to $250 million may be used to pay for construction
costs; 30% of net condominium proceeds in excess of $250 million
will be applied to reduce outstanding borrowings under the credit
facility, with the remaining 70% available as distributable cash
upon CityCenter satisfying certain performance criteria. -- Certain
financial covenants were modified to provide CityCenter with
greater flexibility during its first 18 months of operations.
Evercore Partners served as financial advisor to MGM MIRAGE and
Moelis & Company and Perella Weinberg Partners served as
financial advisors to Dubai World. Glaser, Weil, Fink, Jacobs,
Howard & Shapiro, LLP and Morrison & Foerster served as
legal advisors to MGM MIRAGE and Paul, Hastings, Janofsky &
Walker LLP and Quinn Emanuel Urquhart, Oliver & Hedges served
as legal advisors to Dubai World. Statements in this release which
are not historical facts are "forward looking" statements and "safe
harbor statements" under the Private Securities Litigation Reform
Act of 1995 that involve risks and/or uncertainties, including
risks and/or uncertainties as described in the company's public
filings with the Securities and Exchange Commission. About MGM
MIRAGE MGM MIRAGE (NYSE:MGM), one of the world's leading and most
respected companies with significant holdings in gaming,
hospitality and entertainment, owns and operates 16 properties
located in Nevada, Mississippi and Michigan, and has 50%
investments in four other properties in Nevada, New Jersey,
Illinois and Macau. CityCenter, an unprecedented urban metropolis
on the Las Vegas Strip scheduled to open in late 2009, is a joint
venture between MGM MIRAGE and Infinity World Development Corp, a
subsidiary of Dubai World. MGM MIRAGE Hospitality has entered into
management agreements for future casino and non-casino resorts in
the People's Republic of China, Abu Dhabi, U.A.E. and Vietnam. MGM
MIRAGE supports responsible gaming and has implemented the American
Gaming Association's Code of Conduct for Responsible Gaming at its
properties. MGM MIRAGE has received numerous awards and
recognitions for its industry-leading Diversity Initiative and its
community philanthropy programs. For more information about MGM
MIRAGE, please visit the company's website at
http://www.mgmmirage.com/. About Dubai World Dubai World is a
leading global corporation focused on five strategic growth areas:
Transport & Logistics, Drydocks & Maritime, Urban
Development, Investment & Financial Services, and Energy &
Natural Resources. Its portfolio comprises some of the world's best
known companies, including DP World, Drydocks World & Dubai
Maritime City, Economic Zones World, Nakheel, Leisurecorp, and
Istithmar World. Dubai World's strategy is driven by a combination
of pragmatic acquisitions and prudent investments and its corporate
philosophy is based on strong fundamentals, best ethical practices
and integrity. http://www.dubaiworld.ae/ MGM MIRAGE Contacts:
Investment Community News Media DANIEL J. D'ARRIGO ALAN M. FELDMAN
Executive Vice President, Senior Vice President Chief Financial
Officer Public Affairs (702) 693-8895 (702) 650-6947 Dubai World
Contacts: Media inquiries: US +1 310 592 5882 Dubai +971 (0) 50
6250890 DATASOURCE: MGM MIRAGE; Dubai World CONTACT: Investment
Community, Daniel J. D'Arrigo, Executive Vice President, Chief
Financial Officer, +1-702-693-8895, or News Media, Alan M. Feldman,
Senior Vice President, Public Affairs, +1-702-650-6947, both for
MGM MIRAGE; or Dubai World Contacts, US, +1-310-592-5882, or Dubai,
+971-0-50-6250890, Web Site: http://www.mgmmirage.com/ Company News
On-Call: http://www.prnewswire.com/comp/000725.html
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