MGM MIRAGE and Dubai World Complete $1.8 Billion Financing Through an
Initial Group of Leading Financial Institutions
LAS VEGAS, Oct. 6 /PRNewswire-FirstCall/ -- MGM MIRAGE (NYSE: MGM)
announced today that CityCenter, a joint development project with Dubai
World, successfully completed the first phase of its $3.0 billion financing
package by securing a $1.8 billion senior bank credit facility. The
facility, which matures in April 2013, is expected to be increased to a
total amount of $3.0 billion as additional commitments are received.
CityCenter has received additional signed commitment letters totaling in
excess of $500 million, which commitments are expected to be added to the
facility once completed. Both MGM MIRAGE and Dubai World continue to work
with additional lenders and will seek the remaining commitment amounts
through a syndication process beginning on October 7, 2008.
"Even in the current difficult lending environment, strong
well-conceived projects attract financing - CityCenter is such a project.
We appreciate the strong support CityCenter has received from these
participating financial institutions," said Dan D'Arrigo, Executive Vice
President and CFO of MGM MIRAGE. "We and our partner are actively in
discussions with additional financial institutions to obtain the additional
funding of the credit facility and are receiving strong interest in the
syndication process set to launch this week."
The credit facility consists of a $250 million revolver with the
remaining amount being in the form of term loans and is secured by
substantially all of the assets of CityCenter. The facility is initially
priced at LIBOR plus 3.75% through the construction period. This facility
is led by Bank of America, Royal Bank of Scotland, UBS, BNP Paribas, and
Sumitomo Mitsui. In addition, other current participants include Deutsche
Bank, Morgan Stanley, and the Bank of Nova Scotia.
"MGM's strong balance sheet and long track record of superior financial
performance combined with the substantial financial resources of our
partner uniquely position CityCenter in an obviously difficult credit
market," said Mr. D'Arrigo
As previously stated in MGM's Form 10-Q for the period ended June 30,
2008, the estimated net project budget for CityCenter is $8.6 billion,
after net residential proceeds of approximately $2.7 billion. The gross
project budget consists of $9.3 billion of construction costs (including
capitalized interest), $1.7 billion of land, $0.2 billion of preopening
expenses, and $0.1 billion of intangible assets. CityCenter is scheduled to
be completed in December 2009.
About MGM MIRAGE:
MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected
development companies with significant holdings in gaming, hospitality and
entertainment, owns and operates 17 properties located in Nevada,
Mississippi and Michigan, and has 50% investments in four other properties
in Nevada, New Jersey, Illinois and Macau. MGM MIRAGE is developing major
casino and non- casino resorts, separately and with partners in Las Vegas,
Atlantic City, the People's Republic of China and Abu Dhabi, U.A.E. 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 CityCenter:
CityCenter is an unprecedented urban metropolis that will open in late
2009 on 67 acres between Bellagio and Monte Carlo resorts on the Las Vegas
Strip. A joint venture between MGM MIRAGE (NYSE: MGM) and Dubai World,
CityCenter is valued at more than $9 billion and will feature ARIA, a 61-
story, 4,000-room gaming resort; three luxury non-gaming hotels including
Las Vegas' first Mandarin Oriental, The Harmon Hotel, Spa & Residences and
Vdara Condo Hotel; Veer Towers, the development's only strictly residential
buildings; approximately 2,600 condominium residences; and The Crystals, a
500,000-square-foot retail and entertainment district. CityCenter also will
feature a $40 million public fine art program with works by acclaimed
artists including Maya Lin, Jenny Holzer, Nancy Rubins, Claes Oldenburg and
Coosje van Bruggen, among others. CityCenter is a design collaboration
between MGM MIRAGE and eight internationally acclaimed architectural firms
including Pelli Clarke Pelli, Kohn Pedersen Fox, Helmut Jahn, RV
Architecture LLC led by Rafael Vinoly, Foster + Partners, Studio Daniel
Libeskind(1), Rockwell Group and Gensler. Charting a new course for
responsible growth in Las Vegas, MGM MIRAGE is pursuing the U.S. Green
Building Council's Leadership in Energy and Environmental Design (LEED)
certification at CityCenter. As planned, the 18- million-square foot,
multi-use project will become one of the world's largest environmentally
sustainable urban communities. Dubai World, a major investment holding
company which wholly owns or has substantial interest in a portfolio of
businesses, owns 50 percent of CityCenter through its affiliates Infinity
World (Cayman) L.P. and Infinity World Investments LLC. The Dubai World
Group has more than 50,000 employees in over 100 cities around the globe.
For more information about CityCenter, please visit
http://www.citycenter.com.
(1) As a consultant to AAI Architects, Inc.
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.
SOURCE MGM MIRAGE
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Related links:
http://www.citycenter.com
http://www.mgmmirage.com
CONTACT:
Investment Community, DAN D'ARRIGO, EVP &
Chief Financial Officer, +1-702-693-8895, or Media, ALAN M.
FELDMAN, Senior Vice President of Public Affairs,
+1-702-650-6947, afeldman@mirage.com, both of MGM MIRAGE
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