First, a complicated bond and stock offering will raise $2.5 billion for the resort and gaming operator.
MGM Mirage financial situation is not affecting MGM Mirage Macau according to managing director of MGM Grand, Pansy Ho. Project CityCenter made a $220 million payment.
Ho states they are keeping a close watch on the economic downtown in America and it should not be a big roadblock currently.
Legal action in $9.1 billion real estate Project CityCenter Las Vegas brought on by joint venture partner Dubai World against real estate developer MGM Mirage. Dubai World says their partner is mismanaging the resort located on the Las Vegas Strip. The project has been riddled with financial difficulties.
New owner of Treasure island Las Vegas hotel was approved last week. Phil Ruffin, previous owner of New Frontier, was ok’d by the Nevada Gaming Commission to become the new operator from MGM Mirage. They are the same company building the massive Project CityCenter Resort located on the Las Vegas Strip.
Ruffin changed his initial payment to MGM Mirage by adding $100 million to the $500 million initially agreed. This financial move is to decrease his total payment of $775 million by a $20 million discount.
Purchase of Treasure Island Las Vegas hotel for $775 million approved by the Gaming Control Board. The Board didn’t take long to ok the real estate transaction by Phil Ruffin. Final ruling will commence on March 19, 2009 and 11 days later it will close with approval.
Terms for the commercial real estate deal will start with $500 million due to MGM Mirage at closing. Another $100 million will be payable in six months. Finally, $175 million balance due in two years with a 10 percent interest rate.
M Resort Las Vegas is expected to open for business on March 1, 2009. The local $1 billion Las Vegas hotel casino on 93 acres of land will have 390 rooms, nine restaurants, 90,000 square foot casino, 2.3 acres of luxurious pool, 20,000 square foot spa and 60,000 square feet of meeting areas.