LAS VEGAS (AP) — CityCenter Holdings LLC, , which owns the massive Las Vegas casino joint venture of MGM Resorts International and Dubai World's Infinity World Development Corp., said Friday it issued $1.5 billion worth of notes to raise money to help reduce cut its outstanding debt.
CityCenter issued $900 million of its 7.625 senior secured first lien notes due in 2016 and $600 million of its 10.75 percent senior secured second lien payment-in-kind toggle notes due in 2017.
The company plans to use the proceeds, plus $77 million in equity contributions from its owners, to reduce the balance on its senior secured credit facilities to $500 million from $1.85 billion, to create an interest escrow for first lien debt, and to pay fees and expenses.
The $500 million balance of the senior secured credit facility will be extended to January 2015 under an amended and restated agreement.
MGM Resorts, in which Kirk Kerkorian is a major investor, has said the Las Vegas market is stabilizing. But the company has continued to book losses on its stake in the mammoth complex, which cost $8.5 billion to build.
CityCenter is on the Las Vegas Strip, which was hit hard by the recession and slow economic recovery. CityCenter posted an operating loss of $1.27 billion during the first three quarters of 2010.
Shares of MGM Resorts, which is based in Las Vegas, fell 31 cents, or 2 percent, to $15.01 in afternoon trading.
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