Dan D'Arrigo
The New Jersey Casino Control Commission (CCC) approved the settlement agreement between the company and the New Jersey Division of Gaming Enforcement (DGE) under which MGM Mirage will sell its 50% ownership interest in the Borgata Hotel Casino & Spa and related leased land in Atlantic City.
At the same time, MGM Mirage announced it had closed a private offering of $845 million of its 9% senior secured notes due March 2020. The notes were issued at par with a four-year no call feature.
"The DGE's Report acknowledges there is no evidence that Pansy Ho has engaged in any wrongdoing or been accused of any illegal activity," said MGM Mirage Chairman and CEO Jim Murren.
Pansy Ho is MGM Mirage's joint venture partner in the MGM Grand Macau casino in Macau, China.
Please see related Real Estate Channel postings:
- Perini Threatens MGM Mirage With $492M Lawsuit on Unfinished CityCenter Hotel Project, Mar. 16, 2010
- Tishman Completes Las Vegas' $8.5 Billion CityCenter Project, Dec. 16, 2009
- Las Vegas' CityCenter Opens Vdara Resort Hotel and Spa, Dec. 1, 2009
- Las Vegas CityCenter Reveals The SPA at ARIA Resort, Oct. 13, 2009
- CONDO ROUNDUP, MGM Cuts Prices at CityCenter Project, Oct. 8, 2009
- CONDO ROUNDUP: CityCenter Condo Prices in Las Vegas Could be Cut; Reno's Montage Seeks Buyer; Boston Market Weak, Sept. 21, 2009
- Vegas' CityCenter Plans a Multi-Tower Grand Opening in December, Sept. 16, 2009
- Las Vegas' CityCenter to be one of World's Largest Green Developments, Aug. 7, 2009
- CityCenter Las Vegas Drives Energy Sustainability Efforts with World's First Compressed Natural Gas Powered Limo Fleet, Aug. 4, 2009
- MGM CityCenter Reveals Unparalleled Collection of Luxury Retailers and Restaurants, July 6, 2009
- MGM's CityCenter Nears Completion as it Tops out Final Residential Component, Veer Towers, May 20, 2009
Murren adds, "Gaming regulators in the other jurisdictions where we operate casinos are well aware of this matter, had access to the same information as the New Jersey gaming regulators, and have all either determined that the Company's relationship with Pansy Ho is appropriate or that further action was not necessary.
"MGM Mirage structured its business relationship with Pansy Ho to ensure the highest standards of operation and compliance with all applicable gaming laws and to protect against any improper influence.
"We have had a very positive working relationship with Pansy Ho and have a spotless operating record at MGM Grand Macau, which opened more than two years ago.
"We are the only operator in Macau with a fully independent compliance committee and our joint venture meets the highest standards of good governance."
MGM Mirage owns the Borgata through a 50-50 joint venture with Las Vegas-based Boyd Gaming Corp. whose interest is not affected by the settlement.
In its $845 million senior secured notes offering, Murren said the company received about $826 million in net which have been applied to the prepayment of about $820 million of loans under its senior credit facility and to related fees and expenses.
Murren says the prepayment satisfied the requirement for a 20% reduction to the credit exposures of the Company's lenders which agreed to the credit facility amendment announced on February 25.
The prepayment also resulted in a re-tranching of the Company's senior credit facility pursuant to a restatement of the related agreement.
"The closing of this much anticipated transaction is a milestone for our company and its shareholders," Murren says.
"It is a re-affirmation of our bank partners' commitments and their long term view of our prospects.
"These transactions punctuate our many achievements over the last several months and provides our Company with a solid financial foundation."
He said MGM Mirage was "pleased with the strong level of interest this offering attracted and by the restatement of the company's senior credit facility.
"The restated credit facility permits the extension of a significant portion of our credit facilities to Feb. 2014," adds Dan D'Arrigo, Executive Vice President and Chief Financial Officer of MGM Mirage. "These events significantly enhance the liquidity and maturity profile of our Company."
D'Arrigo adds the notes are secured by a mortgage on MGM Grand Las Vegas and substantially all existing and future property of MGM Grand Hotel, LLC and (upon the receipt of required regulatory approvals) will be secured by a pledge of the limited liability company interests in MGM Grand Hotel, LLC.
Leave a comment