MGM Resorts International to Buy Stake in CityCenter
July 01 2021 - 9:35AM
Dow Jones News
By Dave Sebastian
MGM Resorts International said it has agreed to buy Infinity
World Development Corp.'s 50% interest in CityCenter Holdings LLC
for $2.13 billion.
The purchase price reflects a valuation of $5.8 billion based on
net debt of $1.5 billion, the company said Thursday. The deal will
make MGM Resorts the 100% owner of CityCenter on the Las Vegas
Strip, which comprises Aria Resort & Casino and Vdara Hotel and
Spa.
MGM Resorts also said it entered into an agreement with
Blackstone to monetize the Aria and Vdara real-estate assets. Funds
managed by Blackstone will acquire the Aria and Vdara real estate
for $3.89 billion in cash, representing 18.1 times rent, MGM
Resorts said. After the acquisition, both properties will be leased
to MGM Resorts for initial annual rent of $215 million, the company
said.
"Uniting all of CityCenter under MGM Resorts' corporate
structure and strategy will allow us to consolidate financial
results" and "build on efforts to strengthen our operating model,"
MGM Resorts President and Chief Executive Bill Hornbuckle said.
MGM Resorts expects the transactions to close in the third
quarter.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
July 01, 2021 09:31 ET (13:31 GMT)
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