Financing secured for Atlantic City resort

Tuesday, Dec. 19, 2000 | 11:16 a.m.

Boyd Gaming Corp. and MGM MIRAGE today announced they have secured debt financing to develop the Borgata, a $1 billion hotel-casino under construction in Atlantic City.

The loan will provide up to $630 million to build the resort, located on 120 acres owned by MGM MIRAGE in Atlantic City's Marina district. Boyd Gaming and MGM MIRAGE are each providing $200 million in equity to the Borgata, though a portion of MGM MIRAGE's equity contribution includes the value of the land parcel.

The loan was underwritten by CIBC World Markets, Deutsche Bank Securities, Banc of America Securities, Fleet National Bank and Lehman Bros.

Boyd Gaming and MGM MIRAGE each own 50 percent of the Borgata, though Boyd will be the managing partner. Completion of the resort, Atlantic City's first new property in a decade, is set for summer 2003.

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