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| MGM > SEC Filings for MGM > Form 8-K on 18-Oct-2012 | All Recent SEC Filings |
18-Oct-2012
Entry into a Material Definitive Agreement, Other Events, Financial Sta
On October 18, 2012, MGM China Holdings Limited ("MGM China"), an indirect subsidiary of MGM Resorts International (the "Company"), with its ordinary shares listed on The Stock Exchange of Hong Kong Limited, announced that MGM Grand Paradise, S.A. ("MGM Grand Paradise"), a wholly owned subsidiary of MGM China, formally accepted the terms and conditions of a land concession contract (the "Land Concession Contract") from the government of the Macau Special Administrative Region of the People's Republic of China ("Macau") to develop a five-star resort and casino on an approximately 17.8 acre site on Cotai, Macau.
The Land Concession Contract will not become effective until the Macau government publishes it in the Official Gazette of Macau (the "Publication Date"). The initial term of the Land Concession Contract is 25 years from the Publication Date, with a right to renew such period in accordance with applicable Macau laws. Under the Land Concession Contract, MGM Grand Paradise is required to complete the development of the land within 60 months from the Publication Date.
The total land premium payable to the Macau government for the Land Concession Contract is approximately $161.4 million. The land premium is composed of a down payment and eight additional semi-annual payments. In addition, MGM Grand Paradise is required to pay the Macau government approximately $269,000 per year in rent during the course of development of the land and approximately $681,000 per year in rent once the development is completed. The annual rent is subject to review by the Macau government every five years.
The foregoing description of the Land Concession Contract is qualified in its entirety by reference to the full text of the Land Concession Contract, which will be filed following the Publication Date as an exhibit to the quarterly or annual report for such period.
On October 18, 2012, the Company issued a press release announcing formal acceptance of the Land Concession Contract. A copy of the press release is attached hereto as Exhibit 99.
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) Exhibits:
Exhibit No. Description
99 Press Release, dated October 18, 2012.
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