Vegas | Monorail secures new loan to pay off $10 million in bonds due Monday
The Las Vegas Monorail Co. says it has secured a new loan to pay off $10 million in additional bonds and interest that come due Monday.
Ingrid Reisman, spokeswoman for the private nonprofit, wrote in a statement that the new deal will also cover an additional $3 million in monorail bonds that will mature in 2055. However, she did not disclose. the exact amount of the loan, its interest rate or its financier. .
The announcement came as public financial information indicated that Monorail Co. was unlikely to repay the $10 million bond without outside financial assistance. On Friday, the bond’s trading price was just 3 cents on the dollar, according to the Financial Industry Regulatory Authority’s online market data center.
“The market doesn’t think this bond will be repaid,” said Hugh Anderson, managing director of HighTower Advisors in Las Vegas.
Reisman wrote that the Monorail Co. is still pushing for an additional $172 million to extend its 3.9-mile long track on the east side of the Strip to Mandalay Bay and to the MSG Sphere at The Venetian project. arena.
“We intend to fund the expansion program as planned,” she wrote. “When we have additional details, we will share them as appropriate.”
Earlier this year, Monorail Co. Chairman Curtis Myles asked the Clark County Commission to guarantee up to $135 million in hotel room tax revenue over 30 years if the monorail had any. need to help pay for extensions. The commission has not yet made a decision on the request.
The Monorail Co. has also approached Nevada Governor Steve Sisolak’s office “regarding a substantial new bond financing proposal,” Chief of Staff Michelle White confirmed Friday.
“Despite rumors to the contrary, the Governor has made no decision regarding LVMC’s proposal,” White wrote in a statement. “Any decision made by the governor will only be made after careful consideration and with substantial input from his staff and state agencies.”
The Monorail Co. has repeatedly delayed the start of construction on its planned extension to Mandalay Bay. Securing new bonds to fund the project proved difficult for a system that went bankrupt in 2010 after ticket sales fell well below official projections.
These same problems still plague the monorail. Budget documents showed the system is expected to bring in about $6.5 million less in ticket sales in 2017 and 2018 than predicted in a ridership study commissioned by Monorail Co. released in April 2016.
The nonprofit hasn’t released quarterly traffic and revenue figures on its website since early 2018. It hasn’t released financial statements publicly since 2017.
The Review-Journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson. The Sphere is a Madison Square Garden and Las Vegas Sands Corp project.