MGM Mirage and Dubai World said late Wednesday they have resolved their differences and received the $1.8-billion secured credit facility from lenders necessary to complete and open CityCenter, a $10-billion mini-city between MGM’s Bellagio and Monte Carlo resorts on the Las Vegas Strip. Anchored by the 4,000-room Aria hotel-casino, the multi-tower development remains on schedule to open for business during the fourth quarter, according to the partnership.
The revised partnership agreement and financing plan has Dubai World and MGM Mirage funding their remaining $800 million in equity contributions to CityCenter through letters of credit, and for Dubai World to reimburse MGM Mirage for the equity payments it made to lenders on behalf of the partnership while the two were litigating.
Another key term of the partnership agreement has MGM Mirage now “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.” MGM says that until CityCenter is completed any obligation in this regard “will be supported by the assets of Circus Circus Las Vegas and certain adjacent land through a completion guarantee.”
No comments:
Post a Comment