Two Way Hard Three | Las Vegas Casino & Design Blog

April 29, 2009

CityCenter Funding Plan Approved

Posted by Hunter

After 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.

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.


Read archived comments (9 so far)
April 29, 2009 3:20 PM Posted by Dave

I guess that means Circus Circus is off the market, so Steve Wynn will have to settle for anything from the Bellagio to Excalibur.

April 29, 2009 3:34 PM Posted by Jeff Simpson

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.

April 29, 2009 3:38 PM Posted by parchedearth

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.

April 29, 2009 4:56 PM Posted by David McKee

Bids for Beau Rivage were due Tuesday. I wonder if anything fell across the transom.

April 30, 2009 8:41 PM Posted by Tom M.

Is City Center a seperate legal entity from the rest of MGM?

April 30, 2009 8:44 PM Posted by Hunter


CityCenter LLC is a 50/50 JV between MGM Mirage and Dubai World.

May 1, 2009 8:53 AM Posted by Las Vegas USA

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.

May 1, 2009 9:29 AM Posted by Jeff in OKC

How big a deal is the stopping of trading during the day? Is it common, and does it usually siginfy something?

May 1, 2009 9:48 AM Posted by Hunter

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.