Question-and-Answer Session
Operator
Thank you. If you would like to ask a question at this time please press *1 on your touchtone phone. If you are on a speaker phone please make sure you depress your mute function before signaling to be sure your signal can reach our equipment. Once again that is *1 to ask a question and we’ll pause for one moment to give everyone a chance to signal.
We will take our first question from Ethan McAfee with Ramsey Asset Management. Please go ahead.
Ethan McAfee - Ramsey Asset Management
Hi guys. I just had a couple of questions and just wanted to get a little bit of clarification. Could you just go back to the debt markets. Obviously I think you see you need to raise approximately $2 billion roughly to complete the project in Las Vegas. Has any of those debt commitments actually been made yet or what is the status of those?
Robert Sillerman
No. They haven’t. We have had conversations with our existing senior lenders. You know that on the project that we had acquired productive senior loan of I believe we are at Libor +125. We are at Libor +150. Obviously that debt was placed in June of 2007 in a different world. We’ve had very direct conversations with that?it is a consortium of German banks. No commitment has been asked for or received although indications of debt at the level you are talking about, albeit at higher pricing by the way, have been discussed. It has been my belief and I cannot seek specific commitments on the debt until such time as we have a little bit more clarity on the rest of the capital structure. I think I’m going to change that view. I think that some time in the near future, and I won’t want to speculate as to what that means but I had originally not planned on going to seek commitments until 2009 because we have that flexibility, but I am now thinking it will answer a lot of your concerns if we are able to convert those conversations about what our existing lending group is willing to do in expanding this $2 billion plus facility – if we convert that into commitment.
Paul you have been leading those conversations. Do you have anything you want to add on that?
Paul Kanavos
Well what I would add is the current lending group that we have is very pleased with the loan they have on our property and they realize we probably have the finest location in the marketplace with 1,200 linear footage of frontage approximately located right across from City Center. They are very bullish on the Vegas market long term. They recognize the short-term constraints right now and they have indicated they want to stay affiliated with this property through the development stage and have indicated they are prepared to sit down and talk with us at the appropriate time and we want to talk with them and they have a real interest in leading a facility to allow us to get the development underway.
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