MGM Resorts offers US$1.1b of private placement notes

LAS VEGAS As part of a plan to refinance its year-old CityCenter Las Vegas project, an MGM Resorts International subsidiary is offering a private placement worth US$1.1 billion.

CityCenter Holdings LLC, a joint venture of MGM Resorts and Dubai World, is offering the first and second lien notes, with plans to use net proceeds to refinance debt on the massive Las Vegas Strip development that was built for US$8.5 billion but which was written down in value to US$2.65 billion in August.

Besides reducing its obligations under its existing credit facility, the private placement would extend the maturity of the remaining loans by four years, MGM Resorts says.