CasinoCityTimes.com

Gurus
News
Newsletter
Search News Subscribe
Stay informed with the
NEW Casino City Times newsletter!
Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter!

Gaming News

 

Aladdin Completes Financing of Themed Hotel Entertainment Complex

1 March 1998

LAS VEGAS -- Aladdin Gaming, LLC just announced 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 CEO of Aladdin Gaming. "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 Aladdin Hotel & Casino President James H. McKennon.

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.

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.

London Clubs International will bring the first truly international gaming presence to Las 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.

< Gaming News