IDB Development Corp. Ltd. (TASE: IDBD) and subsidiary Property and Building Ltd. (TASE: PTBL) yesterday released clarifications about the renewal of the loan for the Plaza Casino and Hotel project in Las Vegas. Under the memorandum of understanding with the lenders, Elad IDB Las Vegas LLC, the project company, will deposit $100 million in order to cover various costs, including interest payments, insurance, and property tax on the land, which will be incurred during the 18-month extension of the loan.
Elad IDB is not paying the $100 million in advance, as incorrectly reported last week. Elad Properties share of the payment is $50 million, and IDB Development and Property and Building's shares are $25 million each.
Last Thursday, Elad IDB reached an agreement with the lenders, Goldman Sachs Group Inc. (NYSE: GS) and Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ), for an extension of the $625 million loan taken to help finance the $1.24 billion purchase of the site of the planned Plaza Casino and Hotel, until August 2012.
Yitzhak Tshuva and Nochi Dankner own the project in equal shares: Dankner through IDB Group USA Investments Inc., held equally by Discount Investment Corporation (TASE: DISI) and Property and Building; and Tshuva through Elad Properties. The 1.5-million square meter Plaza Hotel and Casino will have 3,500 rooms, and a 500,000-square meter residential project.
Published by Globes [online], Israel business news - www.globes-online.com - on February 2, 2009
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