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Friday, 21 January 2011

CityCenter Holdings, LLC Completes $2 Billion Financing

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."

OPEC Pressured to Lift Output as African, Asian Oil Tops $100 - Bloomberg

OPEC is facing growing calls to boost oil production as crude prices in Asia and Africa surpass $100 a barrel for the first time in two years.

Nigeria’s Bonny Light grade, from which traders gauge the cost of West African oil, rose to $100.12 a barrel on Jan. 17, passing $100 for the first time since October 2008, according to data compiled by Bloomberg. Malaysia’s Tapis and Indonesia’s Minas breached that level a week ago, trading at $103.36 and $103.21, respectively today.

The International Energy Agency, an adviser to consuming nations, said Jan. 18 that “three-digit oil prices risk damaging” the economic recovery, signaling that the Organization of Petroleum Exporting Countries should raise output. OPEC responded the same day by saying that global supplies are sufficient to meet demand.

Weekly Market Analysis (Week 4) — GCC Index Analysis , GCC Trend Analysis , Pattern Matching , Weekly Index Review — GCC Market Analytics

The weekly market analysis pages have been updated for trading week 4 (January 22nd - January 27th). Use the links below to view the individual market analysis pages:

The table below shows the market outlook based on each study.
Stock Market Outlooks: Dubai, Abu Dhabi, Saudi, Kuwait, Qatar, Bahrain, Muscat
Visit the links above to view the full analysis reports for all GCC markets.

Saudi banks in claim for Dh3bn from Algosaibi - The National

Saudi Arabian banks have lodged formal claims against the al Gosaibi family for immediate repayment of at least 3.2 billion Saudi riyals (Dh3.13bn) of liabilities owed by its indebted businesses.

Documents seen by The National show that at least four big banks in the kingdom have submitted claims to the Committee for the Resolution of Banking Disputes, a body set up by the Saudi Arabia Monetary Agency (SAMA), demanding immediate repayment of loans and credit facilities.

The biggest claim so far is by Al Rajhi Banking and Investment, based in Riyadh, which has asked for the immediate repayment of 1.54bn riyals from Ahmad Hamad Algosaibi and Brothers, the family partnership. - Dubai’s Topaz considers London listing

Topaz Energy and Marine, the Dubai-based oil services company, has appointed JPMorgan Cazenove to advise on a possible flotation on the London Stock Exchange.

The company, one of the biggest oil services companies in the Middle East, is looking to raise “several hundreds of millions of pounds” to expand its businesses in the Gulf and the Caspian Sea as well as smaller operations in west Africa and Brazil, according to a person familiar with the situation.

That person, who described a London listing – first reported on Sky News – as “highly possible”, said a final decision on the matter will be made within the next two months. The company declined to comment.

Malaysia Sukuk Rally Highlights Demand Before Dubai Sales: Islamic Finance - Bloomberg

The month-long rally in Malaysia’s sovereign Islamic bonds is paving the way for a revival in issuance of Shariah-compliant debt.

The yield on the government’s 3.928 percent dollar sukuk due in June 2015 fell to 2.89 percent, down 35 basis points from a five month-high of 3.24 percent on Dec. 15, Royal Bank of Scotland Group prices show. The rate on state-run oil company Petroliam Nasional Bhd.’s 4.25 percent notes due in August 2014 dropped 44 basis points over the same period to 2.75 percent.

Malaysian sukuk recovered as concern over Europe’s debt crisis eased and Dubai’s debt restructuring allowed for new issuance of debt that meets Islam’s ban on interest. Dubai plans to sell bonds this year in Malaysia, strengthening Kuala Lumpur’s role as a global hub for Islamic finance. Emaar Properties PJSC, the developer of the world’s tallest tower in Dubai, set up a $2 billion Islamic bond program, according to a prospectus obtained by Bloomberg this week.