Two Way Hard Three | Las Vegas Casino & Design Blog
April 29, 2009
CityCenter Funding Plan Approved
Posted by HunterAfter a very anti-climatic afternoon which saw MGM Mirage shares stop trading ahead of the closing bell, we see this news that MGM and partner Dubai World have hammered out an agreement, along with the lenders, to make sure CityCenter is completed and opens later this year.
http://phx.corporate-ir.net/phoenix.zhtml?c=101502&p=irol-newsArticle&t=Regular&id=1282241&
It appears that MGM Mirage had to put Circus Circus and its land up as a lien as part of this deal, if construction costs go over.
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Recent Comments
- All Recent Comments on one page.
- Hunter recently commented "Good question. I'm not an expert but I believe it's a semi-big deal but so..." in CityCenter Funding Plan Approved
- Jeff in OKC recently commented "How big a deal is the stopping of trading during the day? Is it common, and..." in CityCenter Funding Plan Approved
- Las Vegas USA recently commented "It will be nice to see this thing finally done and standing. Just poor timi..." in CityCenter Funding Plan Approved
- Hunter recently commented "Yes. CityCenter LLC is a 50/50 JV between MGM Mirage and Dubai World...." in CityCenter Funding Plan Approved
- Tom M. recently commented "Is City Center a seperate legal entity from the rest of MGM?..." in CityCenter Funding Plan Approved
- David McKee recently commented "Bids for Beau Rivage were due Tuesday. I wonder if anything fell across the..." in CityCenter Funding Plan Approved
- parchedearth recently commented "In a separate deal, MGM mortgaged Gold Strike Tunica, MGM Detroit, and othe..." in CityCenter Funding Plan Approved
- Jeff Simpson recently commented "Good news for MGM Mirage, getting Dubai World back in line. It may sound li..." in CityCenter Funding Plan Approved
- Dave recently commented "I guess that means Circus Circus is off the market, so Steve Wynn will have..." in CityCenter Funding Plan Approved
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Comments
I guess that means Circus Circus is off the market, so Steve Wynn will have to settle for anything from the Bellagio to Excalibur.
Good news for MGM Mirage, getting Dubai World back in line. It may sound like a cliche, but CityCenter truly is too big for any of the partners to allow it to fail. Don't be surprised if MGM Mirage sells off one or more properties within the next couple of months. My best guess is that peripheral properties will be the likeliest sales (Beau Rivage, Detroit, and others) and that MGM is in a stronger position to demand a fair price for its Strip properties.
In a separate deal, MGM mortgaged Gold Strike Tunica, MGM Detroit, and other vacant strip land in exchange for an extension until June 30th to restructure their debt. Accordingly, these properties are now off the market.
Although the CityCenter deal will ensure its completion, MGM is a separately incorporated entity and could still find itself in bankruptcy after June 30th.
I think they are still going to need to sell one or more properties to reduce debt and get operating cash. Mirage has gotta be the first one to go.
Bids for Beau Rivage were due Tuesday. I wonder if anything fell across the transom.
Is City Center a seperate legal entity from the rest of MGM?
Yes.
CityCenter LLC is a 50/50 JV between MGM Mirage and Dubai World.
It will be nice to see this thing finally done and standing. Just poor timing of the whole thing along with everything else going on in the world.
How big a deal is the stopping of trading during the day? Is it common, and does it usually siginfy something?
Good question.
I'm not an expert but I believe it's a semi-big deal but something that happens from time to time. It signifies that there will be big enough news to impact the share price significantly and is also used to prevent insiders with info from using it before the news breaks.
Hopefully someone that knows more about this stuff can comment.