LAS VEGAS, Feb. 1, 2016 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) today announced that its subsidiary MGM National Harbor, LLC, has entered into a $525 million bank facility to fund the development and construction of MGM National Harbor in Prince George's County, Maryland. Construction on the $1.3 billion resort casino began in September 2014 and the project is expected to open in the fourth quarter of 2016.
"We are appreciative of the support from our lenders in the development of MGM National Harbor," said Dan D'Arrigo, Executive Vice President, Chief Financial Officer and Treasurer of MGM Resorts International. "This transaction is an important part of the resort's construction progress and we are looking forward to opening this luxury resort later this year."
"This financing, along with the capital contributions from MGM Resorts and our local investors, supports our vision of bringing a world-class entertainment destination to Prince George's County and the State of Maryland," said Lorenzo Creighton, President and Chief Operating Officer of MGM National Harbor. "We recently celebrated the 'topping off' of the resort and are thrilled with the progress we are making for a successful 2016 debut."
The $525 million facility is comprised of a $425 million term loan A and $100 million revolving facility. The revolving and term loan A facilities will initially bear interest at a LIBOR rate plus an additional rate ranging from 2.00% to 2.25% per annum (determined based on a consolidated total leverage ratio). The term loan A and revolving facilities are scheduled to mature in January 2021.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is one of the world's leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The Company is in the process of developing MGM National Harbor in Maryland and MGM Springfield in Massachusetts. The Company also owns 51 percent of MGM China Holdings Limited, which owns the MGM Macau resort and casino and is developing a gaming resort in Cotai, and 50 percent of CityCenter in Las Vegas, which features ARIA Resort and Casino. For more information about MGM Resorts International, visit the Company's website at www.mgmresorts.com.
About MGM National Harbor
The newest addition to the MGM Resorts International portfolio, MGM National Harbor's unrivaled setting offers stunning panoramic views of the eastern shore of the Potomac River in Maryland. The $1.3 billion resort sits a short distance from Washington, D.C. to the north and historic sites, including George Washington's Mount Vernon estate across the river in Virginia. The 24-story, 308-room resort will feature premier amenities and experiences for locals as well as visitors from around the world including a dynamic casino with over 125,000 square feet of space that includes slots, table games and poker; a world-class spa and salon; an entertainment theater with flexible seating for up to 3,000; high-end branded retail; 27,000 square feet of meeting space; and restaurants from renowned local, national and international chefs. For more information about MGM National Harbor, visit the property's website at www.mgmnationalharbor.com.
Statements in this release that are not historical facts are forward-looking statements involving risks and/or uncertainties, including those described in MGM Resorts International's public filings with the Securities and Exchange Commission. MGM Resorts International has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, statements regarding the expected timing for completion of the MGM National Harbor casino resort. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which MGM Resorts International operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in MGM Resorts International's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, MGM Resorts International is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law.
SOURCE MGM Resorts International