MGM Resorts International 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, 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, 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 percent to 2.25 percent per annum (determined based on a consolidated total leverage ratio). The term loan A and revolving facilities are scheduled to mature in January 2021.
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.