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Talks on CityCenter loan reported to have collapsed

By JONATHAN KEEHNER and BETH JINKS
Bloomberg News
MGM Mirage (MGM) and Dubai World’s talks with Deutsche Bank AG for a $1.2 billion loan to complete the Las Vegas CityCenter project collapsed after a disagreement over terms, according to five people with knowledge of the matter.

Deutsche Bank was seeking equity and debt stakes in the $11.2 billion development on the Strip in return for the loan, said the people, who spoke on the condition of anonymity. MGM Mirage and Dubai World, which would have merged CityCenter with a neighboring property owned by the bank, are now holding talks with other parties, one of the people said.

The stock price of MGM Mirage, majority-owned by 91-year-old investor Kirk Kerkorian, fell to its lowest point in at least 19 years in U.S. trading Wednesday after the company said it might breach financial covenants under its senior credit facility this year. Reaching a deal with Frankfurt, Germany-based Deutsche Bank would have helped MGM Mirage and its Dubai partner finish the project without spending more of their own cash.

“We are having ongoing talks with our financial partners about our several options,” MGM Mirage spokesman Alan Feldman said.

A Deutsche Bank spokesman declined to comment.

Deutsche Bank had considered combining the nearby property, the Cosmopolitan, also under construction on the Strip, with the 67-acre CityCenter development between Bellagio and Monte Carlo. CityCenter is scheduled to open late this year.

Agreeing to the transaction with Las Vegas-based MGM Mirage might have enabled Deutsche Bank to avoid booking a write-down on Cosmopolitan, which it foreclosed on last year after developer Bruce Eichner defaulted on a $760 million loan. The bank holds about $1.5 billion of Cosmopolitan’s debt, two people with knowledge of the situation said Feb. 23.

“If the deal is off, MGM Mirage will have to consider other options such as asset sales,” Michael Paladino, an analyst at Fitch Ratings, said. “Investor sentiment around Las Vegas is at an all-time low so it will be difficult to raise capital in public markets. No asset sales would be off the table for MGM and it’s definitely a buyer’s market.”

MGM Mirage shares have slumped 84 percent this year. They closed Wednesday at $2.21, down 41 cents, or 15.65 percent, in New York Stock Exchange trading, the lowest close since at least December 1989.

Wait. Dubai owns property in the casino capital of the world? Was the CityCenter supposed to have a casino too?

gtmash wrote:Wait. Dubai owns property in the casino capital of the world? Was the CityCenter supposed to have a casino too?

That wouldn't surprise me at all!

smoggie wrote:

gtmash wrote:Wait. Dubai owns property in the casino capital of the world? Was the CityCenter supposed to have a casino too?

That wouldn't surprise me at all!

If it was anything like the proposal that was briefly mooted to make Ajman into a Vegas type place then it would have had a casino but no gambling.
Only shows and........well, not really sure what else you could have.
Probably why the proposal never really came to fruition.

http://www.offplanpropertyexchange.com/ ... crapped/81

CVB wrote:

smoggie wrote:

gtmash wrote:Wait. Dubai owns property in the casino capital of the world? Was the CityCenter supposed to have a casino too?

That wouldn't surprise me at all!

If it was anything like the proposal that was briefly mooted to make Ajman into a Vegas type place then it would have had a casino but no gambling.
Only shows and........well, not really sure what else you could have.
Probably why the proposal never really came to fruition.

http://www.offplanpropertyexchange.com/ ... crapped/81

I am sure they will come up with a convoluted "Islamic Gambling" system. Just like Islamic Banking.

^ Yep. I mean how can you beat "Las Vegas" without gambiling?

Perhaps instead of "Gambling" it will be called "Risky Bartering"

K-Dog wrote:Talks on CityCenter loan reported to have collapsed

By JONATHAN KEEHNER and BETH JINKS
Bloomberg News
MGM Mirage (MGM) and Dubai Worlds talks with Deutsche Bank AG for a $1.2 billion loan to complete the Las Vegas CityCenter project collapsed after a disagreement over terms, according to five people with knowledge of the matter.

Deutsche Bank was seeking equity and debt stakes in the $11.2 billion development on the Strip in return for the loan, said the people, who spoke on the condition of anonymity. MGM Mirage and Dubai World, which would have merged CityCenter with a neighboring property owned by the bank, are now holding talks with other parties, one of the people said.

The stock price of MGM Mirage, majority-owned by 91-year-old investor Kirk Kerkorian, fell to its lowest point in at least 19 years in U.S. trading Wednesday after the company said it might breach financial covenants under its senior credit facility this year. Reaching a deal with Frankfurt, Germany-based Deutsche Bank would have helped MGM Mirage and its Dubai partner finish the project without spending more of their own cash.

We are having ongoing talks with our financial partners about our several options, MGM Mirage spokesman Alan Feldman said.

A Deutsche Bank spokesman declined to comment.

Deutsche Bank had considered combining the nearby property, the Cosmopolitan, also under construction on the Strip, with the 67-acre CityCenter development between Bellagio and Monte Carlo. CityCenter is scheduled to open late this year.

Agreeing to the transaction with Las Vegas-based MGM Mirage might have enabled Deutsche Bank to avoid booking a write-down on Cosmopolitan, which it foreclosed on last year after developer Bruce Eichner defaulted on a $760 million loan. The bank holds about $1.5 billion of Cosmopolitans debt, two people with knowledge of the situation said Feb. 23.

If the deal is off, MGM Mirage will have to consider other options such as asset sales, Michael Paladino, an analyst at Fitch Ratings, said. Investor sentiment around Las Vegas is at an all-time low so it will be difficult to raise capital in public markets. No asset sales would be off the table for MGM and its definitely a buyers market.

MGM Mirage shares have slumped 84 percent this year. They closed Wednesday at $2.21, down 41 cents, or 15.65 percent, in New York Stock Exchange trading, the lowest close since at least December 1989.

according to 5 people loool thats a new kind of source loool who are they ? U and ur drinking buddies ?

What nonsense is this? What's a casino without gambling ??
A bit like the sea without water or the desert without sand!!!

dresden wrote:^ Yep. I mean how can you beat "Las Vegas" without gambiling?

Perhaps instead of "Gambling" it will be called "Risky Bartering"

Risky Bartering.....that's the best one I've read on here for a while