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."
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