LAS VEGAS, Oct. 15, 2019 /PRNewswire/ -- MGM Resorts
International (the "Company" or "MGM Resorts") (NYSE:MGM) today
announced that it has entered into a definitive agreement to sell
Circus Circus Las Vegas for $825
million to an affiliate of Treasure
Island owner Phil Ruffin. For
the 12 months ending June 30, 2019,
the property reported Adjusted Property EBITDA of $62 million.
"MGM Resorts has engaged in an exhaustive process to evaluate
its owned real estate and remains committed to executing its
asset-light strategy in a measured way that maximizes value for its
shareholders," said Jim Murren,
Chairman and CEO of MGM Resorts. "The Company expects to utilize
the proceeds from this transaction to enhance its capital
allocation strategy and complement its strategic and operational
flexibility."
Mr. Ruffin added, "Circus Circus has anchored the north end of
the Las Vegas Strip for over 50 years, and I am excited to add it
to my casino portfolio. I have tremendous respect for Jim Murren and the MGM team, and my relationship
with them goes back to my friendship with Kirk Kerkorian and continues to this day."
The Company acquired Circus Circus Las Vegas in connection with
its acquisition of Mandalay Resort Group in 2005. Originally opened
in 1968, today the property has 2,300 employees and is home to the
Adventuredome (a 5-acre indoor amusement park), a 10-acre RV park,
and 37-acre festival grounds.
"On behalf of the entire MGM Resorts family, we would like to
thank our dedicated employees who have worked diligently to ensure
the long-term success of this iconic property," said Ann Hoff, President and COO of Legacy Portfolio
Properties.
The $825 million purchase price
will comprise $662.5 million paid in
cash and a $162.5 million note due
2024.
The transaction is expected to close in the fourth quarter of
2019 subject to customary closing conditions, including receipt of
necessary regulatory approvals. The Company expects to record a
third quarter impairment charge of approximately $220 million in connection with this
transaction.
Morgan Stanley & Co. LLC and CBRE are serving as financial
advisors to MGM Resorts.
ABOUT MGM RESORTS INTERNATIONAL
MGM Resorts
International (NYSE: MGM) is an S&P 500® global entertainment
company with national and international locations featuring
best-in-class hotels and casinos, state-of-the-art meetings and
conference spaces, incredible live and theatrical entertainment
experiences, and an extensive array of restaurant, nightlife and
retail offerings. MGM Resorts creates immersive, iconic experiences
through its suite of Las
Vegas-inspired brands. The MGM Resorts portfolio encompasses
30 unique hotel and destination gaming offerings including some of
the most recognizable resort brands in the industry. Expanding
throughout the U.S. and around the world, the company recently
acquired the operations of Empire City Casino in New York and Hard Rock Rocksino in
Ohio, which was rebranded as MGM
Northfield Park. In 2018, MGM Resorts opened MGM Springfield in
Massachusetts, MGM COTAI in
Macau, and the first
Bellagio-branded hotel in Shanghai. The 82,000 global employees of MGM
Resorts are proud of their company for being recognized as one of
FORTUNE® Magazine's World's Most Admired Companies®. For more
information visit us at www.mgmresorts.com.
Statements in this release that are not historical facts are
"forward-looking" statements and "safe harbor statements" within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve risks and/or uncertainties, including those described
in the Company's public filings with the SEC. The Company has based
forward-looking statements on management's current expectations and
assumptions and not on historical facts. Examples of these
statements include, but are not limited to, the anticipated closing
of the transaction, the expected use of proceeds, the expected
impairment charge and the Company's ability to maximize value for
its shareholders and execute on its asset-light strategy. These
forward-looking statements involve a number of risks and
uncertainties. Among the important factors that could cause actual
results to differ materially from those indicated in such
forward-looking statements include effects of economic conditions
and market conditions in the markets in which the Company operates
and competition with other destination travel locations throughout
the United States and the world,
the design, timing and costs of expansion projects, risks relating
to international operations, permits, licenses, financings,
approvals and other contingencies in connection with growth in new
or existing jurisdictions and additional risks and uncertainties
described in the Company's Form 10-K, Form 10-Q and Form 8-K
reports (including all amendments to those reports). In providing
forward-looking statements, the Company is not undertaking any duty
or obligation to update these statements publicly as a result of
new information, future events or otherwise, except as required by
law. If the Company updates one or more forward-looking statements,
no inference should be drawn that it will make additional updates
with respect to those other forward-looking statements.
MGM RESORTS
CONTACTS:
|
|
Investment
Community
|
News Media
|
AARON
FISCHER
|
BRIAN
AHERN
|
Chief Strategy
Officer
|
Director of Media
Relations
|
(702) 693-7152 or
afischer@mgmresorts.com
|
media@mgmresorts.com
|
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SOURCE MGM Resorts International