Investment banks give Dankner, Tshuva time in Las Vegas

Goldman Sachs and Credit Suisse deferred loan payments by six months.

Goldman Sachs Group Inc. (NYSE: GS) and Credit Suisse Group (NYSE: CS; SWX: CSGN; XETRA: CSGZ) have postponed the repayment of loans given to Nochi Dankner and Yitzhak Tshuva's joint Plaza casino and hotel project in Las Vegas, according to the financial report for the second quarter of Property and Building Ltd. (TASE: PTBL). The loan, used to finance the purchase of the land, can now be repaid in May 2009.

Dankner and Tshuva own the Plaza project in equal shares: Dankner through IDB unit IDB Group USA Investments Inc. held equally by Discount Investment Corporation (TASE: DISI) and its subsidiary Property and Building, and Tshuva through Elad Properties LLC unit Elad Las Vegas LLC.

The Plaza casino project is projected to cost $6-8 billion, including $1.25 billion to buy the land. The casino is due to be completed in 2011-12. The companies are financing it from both their own and external resources. The companies obtained a $625 million loan from Goldman Sachs and Credit Suisse to buy the land in July 2007. This loan bears LIBOR plus 2.75% annual interest. IDB Group USA and Elad Las Vegas also obtained a second, additional, $200 million loan, in equal shares. The companies financed the $400 balance from their own resources.

Published by Globes [online], Israel business news - - on August 12, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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