LAS VEGAS, Jan. 21, 2011 /PRNewswire/ -- CityCenter
Holdings, LLC (the "Company") announced today that it has issued
$900 million aggregate principal
amount of its 7.625% senior secured first lien notes due 2016 and
$600 million aggregate principal
amount of its 10.75% senior secured second lien PIK toggle notes
due 2017. The interest rate on the senior secured second lien
notes increases by 0.75% if CityCenter elects to pay interest in
the form of additional debt. The Company also received
approximately $77 million in
aggregate equity contributions from its owners, MGM Resorts
International (NYSE: MGM) and Infinity World Development Corp.
The net proceeds from the offering and the contributed equity
were used to reduce the outstanding principal balance of the
Company's senior secured credit facilities from approximately
$1.85 billion to $500 million, to
establish an interest escrow for the Company's first lien notes and
remaining senior credit facilities balance for approximately 18
months, and to pay fees and expenses associated with the
transactions. Concurrently with the consummation of the
offering, the Company's senior secured credit facilities were
amended and restated, and the remaining $500
million balance was extended to January 21, 2015.
MGM Resorts International Chairman and Chief Executive Officer
James J. Murren, who also serves as
the Chairman of the Company's Board of Directors, said: "The
success of this financing puts CityCenter on solid long term
financial footing, and allows CityCenter the opportunity to
continue to grow its brand awareness, market share, and cash
flows."
William Grounds, President and
Chief Operating Officer of Infinity World Development Corp said:
"We are very pleased with the strong support shown by the
investment community for this financing. It is particularly
gratifying that CityCenter was able to upsize the first lien notes
from $500 million to $900 million,
which affirms Infinity World's belief in the strong long-term
potential of CityCenter."
CityCenter's President and Chief Executive Officer, Bobby Baldwin, said: "The ARIA Hotel and Casino,
along with the other components of CityCenter, continue to build
momentum and are benefitting from the completion of construction in
their vicinity."
CityCenter 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; Crystals, a retail
dining and entertainment district; 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.
CityCenter Holdings, LLC is a 50/50 joint venture of MGM Resorts
International and Infinity World Development Corp (a wholly owned
subsidiary of Dubai World).
Statements in this release which are not historical facts are
"forward-looking" statements and "safe harbor statements" within
the meaning of Section 21E of the U.S. Securities Exchange Act
of 1934, as amended, and other related laws that involve risks
and/or uncertainties. We have based those forward-looking
statements on management's current expectations and assumptions and
not on historical facts. Examples of these statements include, but
are not limited to, statements regarding the Company's future
expectations. These forward-looking statements involve a number of
risks and uncertainties. Among the important factors that could
cause actual results to differ materially from those indicated in
such forward-looking statements include market conditions for
corporate debt generally, for the securities of gaming, hospitality
and entertainment companies and for the joint venture's
indebtedness in particular. In providing forward-looking
statements, the Company is not undertaking any duty or obligation
to update these statements publicly as a result of new information,
future events or otherwise except as required by law.
SOURCE CityCenter