Sept. 30 (Bloomberg) -- CityCenter Holdings LLC is seeking $1.78 billion in loans to refinance debt, according to a person with knowledge of the transaction.
The joint venture of MGM Resorts International and Infinity World Development Corp. with properties on the Las Vegas strip will host a meeting tomorrow at 2:30 p.m. in New York for potential lenders, said the person, who asked not to be identified because the deal is private. Bank of America Corp. is arranging the transaction, the person said.
CityCenter has about $1.8 billion of debt, including $1.14 billion in bonds that expire in 2016 and $708 million of obligations that come due in 2017, according to data compiled by Bloomberg. The company said last week it would meet with lenders to discuss a refinancing.
“This is an opportunity to extend the debt maturities at lower rates thereby improving CityCenter’s free cash flow,” Dan D’Arrigo, executive vice president and chief financial officer of MGM Resorts, wrote in an e-mailed statement.
The bank deal may include a $75 million revolving line of credit due in five years and a $1.7 billion term loan that matures in 2020, the person said. Lenders to the term portion will receive soft-call protection of 101 cents for six months, meaning CityCenter would have to pay a one cent premium to reprice the debt in the first six months.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.
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