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Boyd Gaming and MGM MIRAGE Complete Borgata Financing19 December 2000LAS VEGAS, Nevada – (Press Release) --Dec. 19, 2000 -- Boyd Gaming Corporation (NYSE: BYD) and MGM MIRAGE (NYSE: MGG) today announced that they have completed arrangements for a loan to finance the construction and development of their jointly-owned Borgata Hotel and Casino in Atlantic City. Construction of the $1 billion resort, which will feature 2,010 guestrooms and a 120,000 square-foot casino, is underway with completion scheduled for the summer of 2003. The loan allows the Borgata to borrow up to $630 million to build the resort, which will be located on a portion of MGM MIRAGE's 120-acre parcel in Atlantic City's Marina District. Boyd and MGM MIRAGE are contributing approximately $200 million each in equity as the remainder of the funds required for the development. A portion of MGM MIRAGE's equity is coming from the contribution of the Borgata's 27-acre site to the joint venture. The loan, which is non-recourse to the two sponsoring companies, is being provided by a group of banks and was underwritten by five arrangers: CIBC World Markets, Deutsche Bank Securities, Banc of America Securities, Fleet National Bank and Lehman Brothers. CIBC is acting as Administrative Agent for the lenders. Boyd Gaming is the managing partner in the Borgata venture. William S. Boyd, Boyd Gaming Chairman and Chief Executive Officer, said, ``We are so pleased to have completed this loan facility to finance the Borgata on favorable terms. MGM MIRAGE and Boyd Gaming are proud to be bringing to Atlantic City this wonderful property which will lead the next phase of resort development in the heart of the East Coast gaming market. We are very appreciative of the excellent support we have received from this bank group in putting together this transaction.'' |