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As Echelon Hits Brakes, CityCenter Cruises

LAS VEGAS-Financing and construction contracts to complete the $9-billion, 19 million-sf construction project will be finalized this quarter, company executives told analysts this week.

By Brian K. Miller | Updated on August 07, 2008

LAS VEGAS-While Boyd’s $4-billion Echelon project is being put on ice due to financing concerns the $9-billion CityCenter construction project here continues unabated and appears to have its financing under control, according to comments made by company executives on a conference call with analysts this week. The 19 million-sf development–rising all at once on 67 acres between the Monte Carlo and Bellagio casinos–is slated to open in late 2009.

MGM Mirage executives told analysts that both it and its JV partner in the project, Dubai World–a conglomerate that owns the company developing the manmade islands off the coast of Dubai–each put up another $300 million in the second quarter to keep the project on track. MGM Mirage CFO Dan D-Arrigo said CityCenter has received to date well over half of the financing commitments from banks and it expects the rest of the financing to be finalized this quarter.

The partnership is working with several relationship lenders regarding a $3 billion financing package and to date CityCenter has received commitments totaling $1.65 billion from the lead banks: Bank of America, Royal Bank of Scotland, UBS, BNP Paribas, and Sumitomo Mitsui. Beyond that, MGM Mirage says CityCenter has received additional, smaller commitments from Deutsche Bank, Morgan Stanley, and the Bank of Nova Scotia.

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