LAS VEGAS—MGM Resorts International 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, MD.
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, EVP, CFO and treasurer, 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 COO, MGM National Harbor.
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.