PHL partner gets financing for Las Vegas casino.
Aladdin Hotel & Casino Completes Financing of Themed Hotel Entertainment Complex
PR Newswire - February 26, 1998 15:02
LAS VEGAS, Feb. 26 /PRNewswire/ -- Aladdin Gaming, LLC, announced today
the closing of its offering of $ 115 million of Holding Company Senior
Discount Notes, together with a $410 million Senior Bank Facility. The
closings finalize the financing of the redeveloped Aladdin Hotel & Casino.
"We have completed the financing of the Aladdin Hotel & Casino at
extremely favorable rates," said Richard Goeglein, President and Chief
Executive Officer, Aladdin Gaming, LLC, adding "construction of the project
will commence immediately."
The $826 million Aladdin Hotel & Casino, one of the largest financed
casino developments in Las Vegas, is the anchor of a $1.3 billion casino,
entertainment and retail complex being developed on the Aladdin site. "The
strength of the financing package is indicative of the strength of the
project," said James H. McKennon, President, Aladdin Hotel & Casino.
Bank of Nova Scotia and Merrill Lynch & Co. were the arrangers of the $410
million Senior Bank Facility. Merrill Lynch and Credit Suisse First Boston
lead the $115 million issue of Holding Company Notes. Westwood Capital, LLC,
of New York acted as the company's financial adviser.
The Senior Bank Facility is the largest bank loan ever received by an
independent non-public casino owner/operator. "The favorable terms and
conditions of our financing achieved our goal to establish a highly
competitive capital structure," added Goeglein.
Aladdin Gaming is a joint venture between the New York-based Sigmund
Sommer Trust, which holds a 75% equity stake, and London Clubs International
PLC, a publicly-owned gaming company headquartered in England. London Clubs
is providing $50 million in cash and will hold a 25% equity position in the
company.
The overall complex, which will feature a theme based on mystical fantasy
and legend, sits on a 34-acre site on the Las Vegas Strip, across the street
from Mirage Resort Inc.'s Bellagio Hotel & Casino and beside Hilton Hotel
Corporation's Paris Hotel & Casino. The location is widely considered one of
the premier sites on the Las Vegas Strip.
London Clubs International will bring the first truly international gaming
presence to Vegas with the development of a luxurious gaming salon and
hospitality facilities fashioned after the great casinos of Europe as part of
the Aladdin Hotel & Casino. London Clubs has significant expertise in the
premium sector of the gaming industry.
Another joint venture partner with Aladdin Gaming is Planet Hollywood
International, Inc., a creator and worldwide developer of consumer brands that
capitalize on the universal appeal of entertainment. The company offers
services in the retail, leisure, entertainment, lodging and gaming sectors.
Planet Hollywood has previously announced the unveiling of a new theme
concept based on the world of music and will co-develop a $250 million 1,000
room hotel and 50,000-square-foot casino as a showcase for its new theme.
TrizecHahn Centers, a Toronto-based real estate developer and investment
firm, in partnership with an affiliate of Aladdin Gaming, will co-develop,
lease and manage operations for Desert Passage, a high-end entertainment and
shopping experience located within the Aladdin complex. The 462,000-square-
foot Desert Passage will feature world-class specialty stores, exotic
boutiques and highly-themed restaurants and entertainment facilities.
Both the music-themed hotel/casino and the Desert Passage will be financed
separately from the Aladdin Hotel & Casino.
Jack Sommer, Chairman of Aladdin Gaming, said the project marks a first
for Las Vegas in several ways and will benefit greatly from the strengths of
its strategic partners. "A project of this size involving nationally and
internationally known partners makes this a unique development and one of the
first new truly mixed-use casino projects in town," Sommer said. The 31-year-
old Aladdin Hotel & Casino, a landmark on the Las Vegas Strip, was closed
Nov. 25, 1997 and is scheduled for implosion in the second quarter of 1998.
The new complex is scheduled to open in the first quarter of 2000.
SOURCE Aladdin Gaming, LLC
/CONTACT: Richard Goeglein or James H. McKennon,
702-736-7114, or Charles |
