"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
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 company1s 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
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
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.