MGM MIRAGE Enters Into Agreement to Sell Treasure Island to Phil Ruffin
15 Dezembro 2008 - 12:00PM
PR Newswire (US)
LAS VEGAS, Dec. 15 /PRNewswire-FirstCall/ -- MGM MIRAGE (NYSE:MGM)
and Ruffin Acquisition, LLC today announced that they have entered
into an agreement whereby MGM MIRAGE, through its wholly-owned
subsidiary The Mirage Casino-Hotel, will sell Treasure Island Hotel
& Casino ("TI") to Ruffin Acquisition, LLC for $775 million.
Ruffin Acquisition, LLC is wholly owned by Phil Ruffin. The
purchase price is to be paid at closing as follows: $500 million in
cash and $275 million in secured notes bearing interest at 10%,
with $100 million payable not later than 175 days after closing and
$175 million payable not later than 24 months after closing. The
notes, to be issued by Ruffin Acquisition, LLC, will be secured by
the assets of TI and will be senior to any other financing. The
transaction is subject to customary closing conditions contained in
the purchase agreement, including receipt of necessary regulatory
and governmental approvals. The parties expect the transaction to
close by the end of the second quarter of 2009. MGM MIRAGE expects
to report a substantial gain on the sale. MGM MIRAGE acquired TI as
part of the merger between MGM Grand, Inc. and Mirage Resorts,
Incorporated in May 2000. "We are extremely proud of the
accomplishments of Treasure Island's employees and management team
in making it one of the must-see properties in Las Vegas," said
James J. Murren, Chairman and Chief Executive Officer of MGM
MIRAGE. "We are pleased to have been able to work with Phil Ruffin,
a known and trusted community partner. This transaction creates
value to our stakeholders through significantly increased liquidity
and enhanced financial flexibility." TI is located on the Las Vegas
Strip and features 2,885 guest rooms and suites, approximately
90,000 square feet of gaming space, several fine and casual dining
outlets, The Sirens of TI -- the iconic pirate battle attraction,
and Mystere, the first permanent production in Las Vegas by Cirque
du Soleil. "We are very excited to be in a position to acquire such
a stellar property in Treasure Island," said Mr. Ruffin. "The
property is in pristine condition, ideally located in the heart of
the Strip and benefits from a wonderful team of outstanding
employees. We are financially positioned to close on this
transaction once all of the necessary approvals have been
received," Mr. Ruffin noted. MGM MIRAGE (NYSE:MGM), one of the
world's leading and most respected development companies with
significant holdings in gaming, hospitality and entertainment, owns
and operates 17 properties located in Nevada, Mississippi and
Michigan, and has 50% investments in four other properties in
Nevada, New Jersey, Illinois and Macau. MGM MIRAGE is developing
major casino and non-casino resorts, separately and with partners
in Las Vegas, Atlantic City, the People's Republic of China and Abu
Dhabi, U.A.E. MGM MIRAGE supports responsible gaming and has
implemented the American Gaming Association's Code of Conduct for
Responsible Gaming at its properties. MGM MIRAGE has received
numerous awards and recognitions for its industry-leading Diversity
Initiative and its community philanthropy programs. For more
information about MGM MIRAGE, please visit the company's website at
http://www.mgmmirage.com/. Statements in this release which are not
historical facts are "forward looking" statements and "safe harbor
statements" under the Private Securities Litigation Reform Act of
1995 that involve risks and/or uncertainties, including risks
and/or uncertainties as described in the company's public filings
with the Securities and Exchange Commission. DATASOURCE: MGM MIRAGE
CONTACT: Investment Community, DAN D'ARRIGO, EVP & Chief
Financial Officer, +1-702-693-8895, or Media, ALAN M. FELDMAN,
Senior Vice President of Public Affairs, +1-702-650-6947, , both of
MGM MIRAGE Web site: http://www.mgmmirage.com/
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