August 29, 2008 / 6:09 PM / 10 years ago

MGM Mirage has secured $2.3 bln for CityCenter-COO

LAS VEGAS, Aug 29 (Reuters) - MGM Mirage (MGM.N) has secured $2.3 billion of the remaining $3 billion in funding needed for its massive CityCenter project on the Las Vegas Strip, the casino operator’s president told Reuters on Friday.

Jim Murren said MGM received a commitment this week for $300 million from China Construction Bank, which follows a recent $150 million from three other banks and $100 million from a fifth bank.

The company said earlier in August that it received lending commitments from several banks totaling $1.65 billion and expected to finalize the total $3 billion financing package by the end of September. Murren said he expects to meet that deadline.

Murren said negotiations with banks have centered on “a spirited debate over pricing.” He said the loan package was being priced at about 375 basis points over LIBOR.

Last August, MGM agreed to sell half of the $9.1 billion CityCenter development of hotels, condominiums and retail outlets to Dubai World, which also plans to acquire a stake of up to 20 percent in MGM itself. (Reporting by Deena Beasley)

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