MGM Mirage to Build Megacasino in Vegas

[Borst]

http://story.news.yahoo.com/news?tmp..._mirage_casino


By ADAM GOLDMAN, Associated Press Writer

LAS VEGAS - Gambling giant MGM Mirage intends to build a new 4,000-room megaresort and sprawling urban development in the heart of the Las Vegas Strip, a project that would dramatically change the landscape of this city's most important commercial center.
MGM Mirage officials are calling the ambitious plan "Project CityCenter," and they believe it will help transform Las Vegas into a sophisticated, multidimensional city, one that rivals other major metropolitan areas.


"Our master plan represents a significant new direction for our city and our company," said Terry Lanni, MGM Mirage Inc.'s chairman and chief executive.


The multibillion-dollar project includes three, 400-room boutique hotels, approximately 550,000 square feet of retail shops, dining and entertainment venues, and a 1,650-unit luxury condominium complex.


The massive development will be built on a 66-acre site between the Bellagio and Monte Carlo hotel-casinos, with the first phase creating 12,000 jobs when it's completed in 2010.


Over the next 18 months, MGM Mirage will pick a master architect and select residential and hotel partners.


Once completed, it could be the largest privately funded development in the country, said Jim Murren, MGM Mirage's president and chief financial officer.


With the announcement, MGM Mirage has settled the question of where it would construct the company's next highly anticipated hotel-casino. It had debated putting the megaresort in either Atlantic City or Las Vegas, which won out for its unprecedented popularity that has helped gambling companies reap dizzying profits since 2003. The city is expected to top a record 37 million visitors this year.


Gambling analysts were cautious about MGM Mirage's announcement, which was expected Wednesday.


"It is somewhat outside the box for MGM," said John Mulkey, a Bear Stearns Co. gambling analyst in New York. "They've been more active acquirers than developers in the past, but it certainly seems within the scope of their abilities to do something impressive with the land."


Like the city, MGM Mirage should soon undergo some enormous changes itself.


Lanni has said the planned $4.8 billion merger with Mandalay Resort Group Inc. is on track for the first quarter of 2005.


The deal is awaiting government approval and would create the world's second-biggest gambling company, a title currently held by Harrah's Entertainment Inc.


The MGM Mirage plan is the third megaresort in the works. Las Vegas Sands has started construction on The Palazzo, a $1.6 billion hotel-casino that's scheduled to open in 2007. It sits across the street from Wynn Las Vegas, Steve Wynn's latest gambling temple that cost $2.7 billion and is slated to open April 28.


In trading Wednesday morning, MGM shares were up 10 cents at $59.80 on the New York Stock Exchange (news - web sites) — near the high end of their 52-week trading range of $34.05 to $60.07.



--------------------

So they are tearing down the Boardwalk to put this up, I always hated that Clown on Boardwalk and never really went in til last trip. But they treated us very well for what other places on strip consider low rollers (4 of us went in and each started with $200 on a $5 min blackjack table and played for like 4-5 hours) They comped us all dinner in the steak house and I get offers in mail all the time. Was looking forward to playing there again next trip so I guess will have to hurry up and get there before it's gone.

[Wizdar]

I guess this answers my question as to why Vegas is so freakin' expensive.

[Red Dog]

Just read that article too. It's weird because I don't remember there being that much land btwn those 2 casinos.

[Deftones]

There is quite a bit of land. What you don't realize is that the Boardwalk is pushed all the way up to the sidewalk. Most of the other casinos you have to walk back off the street into it. There is a ton of real estate in there, that goes back towards the freeway. Mostly just parking lot space now.

[Red Dog]

Originally posted by Deftones, Esq
There is quite a bit of land. What you don't realize is that the Boardwalk is pushed all the way up to the sidewalk. Most of the other casinos you have to walk back off the street into it. There is a ton of real estate in there, that goes back towards the freeway. Mostly just parking lot space now.

I don't doubt you. In my recent trips, I've never approached the Bellagio from the south side. It's been 3 years since I took a monorail ride btwn the 2 so my memory is hazy.

[Goblincat]

I'm in the Monte Carlo right now looking at the exact spot they are going to build this. I like staying at the Monte and it will suck when this thing blocks the view to the Bellagio fountains and Paris.

[LasVegasMichael]

The best news here is that that tacky and obnoxious clown will finally get blown to smithereens. I will be there applauding when that happens.

[Goblincat]

Originally Posted by LasVegasMichael

The best news here is that that tacky and obnoxious clown will finally get blown to smithereens. I will be there applauding when that happens.

This one?

[nevermind]

AHHHH!!!! I hate that fucking thing.

[El Scorcho]

No more Vegas strip eyesore

[Deftones]

Originally Posted by El Scorcho

No more Vegas strip eyesore

You just hate the Boardwalk b/c you always lose all your money there.

[El Scorcho]

Well then there's that too

Losing money sucks

Losing money in a shitty casino like that place sucks even worse

[mrpayroll]

http://news.yahoo.com/s/nm/20090327/...m_citycenter_5

CityCenter venture may file for bankruptcy: sources

By Jui Chakravorty Das and Paritosh Bansal Jui Chakravorty Das And Paritosh Bansal

1 hr 45 mins ago

NEW YORK (Reuters) – CityCenter, an $8 billion Las Vegas project owned by MGM Mirage (MGM.N) and Dubai World (DBWLD.UL), is considering filing for bankruptcy, two sources familiar with the matter said on Friday.

Shares of MGM Mirage, a casino operator controlled by billionaire Kirk Kerkorian, sank 17 percent in morning trading.

MGM and state-owned investor Dubai World are likely to struggle to pay $220 million in debt due Friday on CityCenter, said one source.

A bankruptcy filing could come as soon as Friday, said the second source.

CityCenter has hired the law firm Dewey & LeBoeuf to prepare for a possible filing, the sources said.

A spokeswoman for MGM Mirage declined to comment when contacted Thursday night after the Wall Street Journal first reported the potential bankruptcy filing.

Dewey & LeBoeuf also declined to comment.

A bankruptcy filing depends on the outcome of talks between MGM Mirage, Dubai World and lenders, said the sources, who asked to remain anonymous because the talks are private.

Dewey & LeBoeuf partner Martin Bienenstock is the lead counsel on the assignment, the second source said.

Bienenstock, who was the lead lawyer representing Enron Corp in its Chapter 11 bankruptcy protection case, is also currently working with General Motors Corp (GM.N), the source said.

BMO Capital Markets analyst Jeffrey Logsdon downgraded MGM Mirage shares to "market perform" from "outperform" Friday, citing financial risks.

Dubai World said Monday its Infinity World subsidiary had sued MGM Mirage over the CityCenter development, asking Delaware Chancery Court to find that some financial disclosures in a recent MGM Mirage filing constituted events of default under the joint venture.

CityCenter is a 67-acre residential, resort and retail complex on the Las Vegas Strip. It is slated to open late this year.

Logsdon said the lawsuit "could trigger a new crisis in funding the completion of CityCenter." He added that a series of steps including potential asset sales and working out a new bank agreement could take time, clouding prospects for MGM's stock.

MGM shares were down 52 cents to $2.57 on the New York Stock Exchange.

(Additional reporting by Karen Jacobs; editing by John Wallace and Jeffrey Benkoe)

Chris

[pedagogue]

MGM shares were up 10 cents at $59.80 on the New York Stock Exchange (news - web sites) — near the high end of their 52-week trading range of $34.05 to $60.07.

MGM shares were down 52 cents to $2.57.

Ouch.

[mrpayroll]

http://www.marketwatch.com/news/story/las-vegas-citycenter-averts-bankruptcy/story.aspx?guid={EA22EFD8-81B8-41D4-A84E-C0B7B47D4F70}&siteid=yahoomy

MGM's Las Vegas CityCenter averts bankruptcy

Last-minute $200 million debt payment keeps project alive

By Andria Cheng, MarketWatch

Last update: 4:28 p.m. EDT March 27,

NEW YORK (MarketWatch) -- Las Vegas' CityCenter, an $8.6 billion venture by gambling giant MGM Mirage and Dubai World, narrowly averted bankruptcy Friday when MGM secured waivers from its lenders and stitched together $200 million in funding to keep the massive project alive.

The funding includes $100 million that should have been financed by Dubai World, MGM said. The financing means the construction on the complex could continue while MGM seeks additional funding, the company said. MGM also said it intends to work with Dubai World, its lenders and others to find a long-term solution to fund the completion of CityCenter.

MGM shares closed with a 7.7% loss at $2.85. The stock was down as much as 17% in earlier the session on reports that MGM was struggling to make a $220 million debt payment due Friday. Missing the payment could have sent the project into bankruptcy in days.

CityCenter, a 67-acre site consisting of hotel-condominiums, a casino and a 500,000-square-foot shopping center, had hired law firm Dewey & LeBoeuf to prepare a possible bankruptcy filing, according to a report by The Wall Street Journal, citing unidentified people briefed on the matter.

Dubai World has signaled it won't provide its half of Friday's payment, while MGM Mirage struggles to persuade unwilling lenders to help it finance the project alone, the paper said. The casino company faces a cash crunch as it tries to meet obligations on more than $13 billion in debt. It narrowly averted defaulting on loans last week and warned that it could default by mid-May, the Journal reported.

Missing the payment Friday would have halted work on the project within days, idling 8,500 construction jobs, the Journal said, citing a person familiar with the situation. A delayed opening could also affect 12,000 workers who are to staff the complex, the paper said.

MGM's bonds are rated below investment grade and have traded at a deep discount to their par value due to fears that it will default or file for bankruptcy.

CityCenter, once touted as the largest privately funded development in history, was slated to open later this year after several reductions in its planned scale and scope. MGM has been scrambling to find the money to finish the job, recently using up its last available credit facility and selling off its Treasure Island casino hotel at the heart of the Las Vegas Strip.

Dubai World, saying it's significantly concerned about MGM Mirage's survival, sued the gambling giant Monday, charging a breach of contract over the massive CityCenter joint venture, after MGM said in a disclosure that "there's substantial doubt about our ability to continue as a going concern."

MGM Mirage sold half its interest in CityCenter to Dubai World, the investment arm of the United Arab Emirates government, in late 2007. At the time, Las Vegas was booming. Under terms of that deal, Dubai World also began acquiring shares of MGM Mirage and currently owns about 9.4% of it.
But the global economic crisis has since had a deep impact on Sin City's fortunes, with visitor and spending rates dropping by double digits. That has squeezed the once-robust cash flows of casino operators and left them vulnerable to the risk of default on various debt loads used to fund rapid expansion. See full story.

Andria Cheng is a MarketWatch reporter based in New York. Deborah Levine contributed to the story.

Chris

[mcfly]

I guess this answers my question as to why Vegas is so freakin' expensive.

A lot changes in 4 and a half years. I got something in the mail today from New York New York for $29 a night rooms sometime in July. Couldn't have got that back in 2004.

[Alyoshka]

Originally Posted by mcfly

A lot changes in 4 and a half years. I got something in the mail today from New York New York for $29 a night rooms sometime in July. Couldn't have got that back in 2004.

I got something in the mail from Harrah's (and all the casinos they own) and you wouldn't believe the amount of days they will comp me. And I am not a high roller by any means. Things certainly change.

[pedagogue]

Originally Posted by Alyoshka

I got something in the mail from Harrah's (and all the casinos they own) and you wouldn't believe the amount of days they will comp me. And I am not a high roller by any means. Things certainly change.

Ditto.

Thy are great though...because whenever I travel I try and find their closest casino and stay there for free. I got a really nice suite last year in New Orleans for 3-4 days. I'm headed to KC in a few weeks and they have a place right outside of the city.

[grip]

City Center back on track?

Las Vegas -- Casino operator MGM Mirage said Wednesday that it agreed with partner Dubai World and the pair's lenders to finish an $8.5-billion casino complex on the Las Vegas Strip.

MGM Mirage said Dubai World, the investment arm of the Dubai government, would drop a lawsuit it filed against the Las Vegas-based casino company, which is majority owned by investor Kirk Kerkorian.


The pact secures MGM Mirage's payment obligations for construction costs with its Circus Circus Las Vegas casino and adjacent land. The company said CityCenter is now on track to be fully open by December 2009.

MGM Mirage, which has been struggling under more than $13 billion in debt, also said it reached a separate agreement with its own lenders to waive its payment obligations until June 30, extending a prior agreement by one and a half months.

MGM Mirage Chief Executive Jim Murren said the 45-day extension gave the company "more than enough time" to come up with a comprehensive plan to fix its balance sheet.

"This was the best possible outcome," Murren said.

To get the extension, MGM Mirage paid back $100 million under its revolving credit facility and secured $300 million of its debt with its Gold Strike Tunica casino in Mississippi and undeveloped land on the Las Vegas Strip. It also put up its MGM Grand Detroit casino as collateral for the rest of its credit facility.

All the deals are subject to approval by gambling regulators, the company said.

MGM Mirage received what it called an irrevocable letter of credit for $224 million to secure its payments for CityCenter, which the casino company has touted as the most expensive private commercial development in U.S. history.

As part of the deal between the partners, Dubai World agreed to repay $135 million in construction costs it owed that MGM Mirage has paid on its behalf.

Under that pact, MGM Mirage also agreed to pay any completion costs if the project goes over its current projected budget of $8.5 billion. That figure has been coming down from as high as $9.2 billion in recent months as MGM Mirage cut costs, modified the project and renegotiated with its contractors.

Murren compared the stress of working through this process with Dubai World to what he imagines goes on in other board rooms and in other situations around the world each day.

"At all times the partnership has respected one another," Murren said, in spite of the lawsuit. "At all times we have treated each other with a great deal of maturity."

[Red Dog]

Originally Posted by Alyoshka

I got something in the mail from Harrah's (and all the casinos they own) and you wouldn't believe the amount of days they will comp me. And I am not a high roller by any means. Things certainly change.

Between my TR and a friend's TR, we got a Deluxe Executive Suite at Harrah's comped for 5 days in June. And we're just Gold level.

[rabbit77]

Wow, I'm tempted to book a few nights there in December or January.

[Karli]

I just got an email today from MGM and City Center offering me a suite at $149 during the opening weekend, but I'm going in January for the AEE expo and AVN Awards. I really hope this project is successful and gets MGM and Las Vegas back on track.