Wednesday, Feb. 24, 1999 | 11:07 a.m.
The project at Rampart Boulevard and Alta Drive will cost $140 million to $150 million, and will be called the Suncoast hotel-casino. Its former designation, Sundance, fell by the wayside amid a copyright dispute with the Sundance Film Festival.
The project will consist of a 240-room hotel, a 70,000-square-foot casino, four restaurants, a bowling alley and 16-screen movie theatre. Unlike its nearby neighbor, the Resorts at Summerlin, Suncoast will be a locals-oriented casino.
Coast is in the midst of refinancing the debt it floated in 1996 to build the Orleans hotel-casino. The company is offering to buy back the $175 million principal amount 13 percent first mortgage notes floated to build the Orleans at $1.17 per $1 of principal. That buyback will be funded by a new $175 million note offering and a $75 million bank facility, said Parrish.
That bank facility will be extended to $200 million to finance Suncoast, said Parrish. The bank facility will carry an average interest rate in the 7-percent range, he said. The company will not know the interest rate on the new notes until it sells them, but hopes to get substantially below 13 percent, said Parrish.
Standard & Poor's credit rating service assigned its single B minus rating to the proposed new notes. Based on Coast's recent operating performance, Standard & Poor's said the outlook for the company is stable.