Bankers back W Las Vegas
A syndicate of banks is funding a $232.5 million pre-development credit facility for the W Las Vegas Hotel, Casino & Residences, representing a vote of confidence in the project and its ability to lead the new wave of significant projects planned for Las Vegas.Societe Generale Corporate & Investment Banking part of Societe Generale Group and acting as Sole Lead Arranger & Book-runner, is leading the syndicate of banks.
SG CIB has fully underwritten the facility which includes a $195 million first-lien term loan and a $37.5 million second-lien term loan. Proceeds of the pre-development loan will be used in part to refinance an existing $95 million credit facility, to fund expedited pre-development reserve accounts, and to acquire additional land adjacent to the existing prime property acquired for the project. Located at the intersection of Harmon Avenue and Koval Lane, the W Las Vegas promises to be the geographic and cultural epicenter of the booming Harmon Corridor—an area with over $15 billion of planned development.
The secured credit facility was privately rated by Standard & Poor’s and Moody’s, and the $232.5 million figure represents a low loan-to-value ratio considering the significant value of the underlying property collateral.
“This level of financing commitment at this stage of our development is a powerful vote of confidence in the W brand and our project,” said Reagan Silber, co-chairman of Edge Resorts. “This commitment from Wall Street sends a clear message to the market that the W Las Vegas project is on pace to become the new crown jewel in the W Hotels family and in the Las Vegas skyline.”
“SG CIB is pleased to have acted as a leading financial partner to Edge Resorts and Starwood Hotels and Resorts Worldwide in achieving this level of funding which is a significant milestone in the development of W Las Vegas,” said Michael Kim, Managing Director, Gaming, Lodging & Leisure at SG CIB. “The unique combination of the equity sponsorship of Starwood Hotels and Resorts and Edge Resorts, advanced nature of the plans for the integrated development of this flagship property at a prominent location along the burgeoning Harmon Corridor, and widespread global appeal of the W brand distinguishes this project from many currently being undertaken in the Las Vegas market.”