LAS VEGAS, May 11, 2021 /PRNewswire/ -- MGM Resorts
International ("MGM Resorts") (NYSE: MGM) and MGM Growth Properties
LLC ("MGP") (NYSE: MGP) announced today that they have entered into
a definitive agreement whereby MGP will purchase the real estate
assets associated with MGM Springfield in Western Massachusetts. MGM Resorts will lease
the property from MGP and continue to operate the property
following the consummation of the transaction, with no expected
change to its employees, vendors, customers, and the community.
MGP will pay total consideration of approximately $400 million in cash (which may include cash on
hand or cash from financings, including borrowings under MGP's
revolving credit facility).
MGM Springfield will be added to the existing Master Lease
between MGM Resorts and MGP, and the rent payment to MGP will
increase by $30 million, of which
$27 million will be base rent and
$3 million will be percentage
rent. The sale is expected to close in the fourth quarter of
2021, subject to regulatory approvals and other customary closing
conditions.
"We are pleased to announce today's transaction with MGM Growth
Properties, which we believe serves the best interests of the
shareholders of both companies and further advances our asset-light
commitment," said Bill Hornbuckle,
CEO and President of MGM Resorts. "MGM Springfield has exhibited
strong financial performance as it emerges from the pandemic, and
the property delivered record Adjusted Property EBITDAR in the
first quarter of 2021."
James Stewart, CEO of MGM Growth
Properties, said, "We are excited to add MGM Springfield to our
portfolio of high-quality gaming resort real estate and are
encouraged by the property's recent record financial performance.
This transaction reflects the continued execution of our growth
strategy, will be immediately accretive to AFFO per share upon
closing and further strengthens our master lease with MGM."
As of March 31, 2021, MGM Resorts
held a 42 percent economic interest in the operating partnership of
MGP.
Evercore served as financial advisor to the Conflicts Committee
of MGP's Board of Directors.
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
31 unique hotel and gaming destinations globally, including some of
the most recognizable resort brands in the industry. The Company's
50/50 venture, BetMGM, LLC, offers U.S. sports betting and online
gaming through market-leading brands, including BetMGM and
partypoker. The Company is currently pursuing targeted expansion in
Asia through the integrated resort
opportunity in Japan. Through its
"Focused on What Matters: Embracing Humanity and Protecting the
Planet" philosophy, MGM Resorts commits to creating a more
sustainable future, while striving to make a bigger difference in
the lives of its employees, guests, and in the communities where it
operates. The 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, please visit us at
www.mgmresorts.com. Please also connect with us @MGMResortsIntl on
Twitter as well as Facebook and Instagram.
About MGM Growth Properties
MGM Growth Properties LLC
(NYSE:MGP) is one of the leading publicly traded real estate
investment trusts engaged in the acquisition, ownership and leasing
of large-scale destination entertainment and leisure resorts, whose
diverse amenities include casino gaming, hotel, convention, dining,
entertainment and retail offerings. MGP, together with its joint
venture, currently owns a portfolio of properties, consisting of 12
premier destination resorts in Las
Vegas and elsewhere across the
United States, MGM Northfield Park in Northfield, OH, Empire Resort Casino in
Yonkers, NY, as well as a retail
and entertainment district, The Park in Las Vegas. As of December 31, 2020, MGP's portfolio of destination
resorts, the Park, Empire Resort Casino, and MGM Northfield Park
collectively comprised approximately 32,400 hotel rooms, 1.6
million casino square footage, and 3.6 million convention square
footage. As a growth-oriented public real estate entity, MGP
expects its relationship with MGM Resorts and other entertainment
providers to attractively position MGP for the acquisition of
additional properties across the entertainment, hospitality and
leisure industries. For more information about MGP, visit the
Company's website at http://www.mgmgrowthproperties.com.
Forward-Looking Statements
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 each of MGM Resorts'
and MGP's public filings with the Securities and Exchange
Commission. Management of MGM Resorts and MGP have based
forward-looking statements on their current expectations and
assumptions and not on historical facts. Examples of these
statements include, but are not limited to, the closing of the sale
and any expected benefits to be realized as a result of the
transaction. 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
companies operate 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, delays or impediments to completing planned
acquisitions or projects, the ultimate timing and outcome of any
planned acquisitions or projects, MGP's ability to maintain its
status as a REIT and additional risks and uncertainties described
in each of MGM Resorts' and MGP's periodic reports filed with the
Securities and Exchange Commission (including all amendments to
those reports). In providing forward-looking statements, neither
company is 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 either 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
INTERNATIONAL CONTACTS:
|
|
Investment
Community
|
News
Media
|
JIM
FREEMAN
|
BRIAN
AHERN
|
Senior Vice
President, Capital Markets and Strategy
|
Director of
Communications
|
jfreeman@mgmresorts.com
|
media@mgmresorts.com
|
|
|
MGM GROWTH PROPERTIES
LLC CONTACTS:
|
News Media
|
Investment
Community
|
(702) 669-1480 or
media@mgpreit.com
|
ANDY H.
CHIEN
|
|
Chief Financial
Officer
MGM Growth Properties LLC
|
|
(702)
669-1470
|
|
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SOURCE MGM Resorts International; MGM Growth Properties LLC