LAS VEGAS, July 1, 2021 /PRNewswire/ -- MGM Resorts
International ("MGM Resorts" or the "Company") (NYSE: MGM) today
announced that it has entered into a definitive agreement to
purchase Infinity World Development Corp's ("Infinity World") 50
percent interest in CityCenter Holdings, LLC for $2.125 billion. The purchase price represents an
implied valuation of $5.8 billion
based on net debt of $1.5 billion,
after giving effect to the recently closed sale of a two-acre
parcel. The agreement will make MGM Resorts the 100 percent owner
of CityCenter on the Las Vegas Strip, which is comprised of Aria
Resort & Casino and Vdara Hotel and Spa.
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"CityCenter has consistently elevated the Las Vegas experience over the years,
contributing to this vibrant city's undeniable position as a top
tourism and business destination," said Bill Hornbuckle, CEO and President of MGM
Resorts. "Uniting all of CityCenter under MGM Resorts' corporate
structure and strategy will allow us to consolidate financial
results, build on efforts to strengthen our operating model and
guest experience and further our vision of becoming the world's
premier gaming entertainment company."
MGM Resorts has also entered into a definitive agreement with
Blackstone to monetize the Aria and Vdara real estate assets,
pending the close of the equity purchase agreement between MGM
Resorts and Infinity World. Under terms of the agreement, funds
managed by Blackstone will acquire the Aria and Vdara real estate
for $3.89 billion in cash, which
represents a multiple of 18.1x rent. Following the acquisition,
both properties will be leased to MGM Resorts for initial annual
rent of $215 million.
Regarding the real estate agreement with Blackstone, Hornbuckle
added, "This transaction demonstrates the unprecedented premium
value of our real estate assets and is a testament to Aria and
Vdara's status as premier destinations on the Las Vegas Strip. We
expect to continue executing on our asset-light strategy and
utilizing the proceeds from our real estate transactions to enhance
our financial flexibility and secure new growth opportunities."
Tyler Henritze, Head of U.S.
Acquisitions Americas for Blackstone Real Estate, said: "This
transaction reflects our high conviction in Las Vegas and our strong partnership with MGM
Resorts. CityCenter is a best-in-class resort and complementary
addition to our portfolio of high-quality assets on the Strip. We
look forward to continuing our productive collaboration with MGM
Resorts."
The transactions are expected to close in the third quarter,
subject to certain closing conditions. The closing of the Infinity
World transaction is not contingent on the closing of the
transaction with Blackstone.
PJT Partners is serving as exclusive financial advisor and Weil,
Gotshal & Manges LLP is serving as legal counsel to MGM Resorts
on both transactions. Moelis & Company LLC is serving as
exclusive financial advisor and Paul Hastings LLP is serving as
legal counsel to Infinity World. Simpson Thacher & Bartlett LLP
is acting as legal counsel to Blackstone.
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 Blackstone Real Estate
Blackstone is a global
leader in real estate investing. Blackstone's real estate
business was founded in 1991 and has $196 billion of investor
capital under management. Blackstone is one of the largest property
owners in the world, owning and operating assets across every major
geography and sector, including logistics, multifamily and single
family housing, office, hospitality and retail. Our opportunistic
funds seek to acquire undermanaged, well-located assets across the
world. Blackstone's Core+ strategy invests in substantially
stabilized real estate globally through regional open-ended funds
focused on high-quality assets and Blackstone Real Estate Income
Trust, Inc. (BREIT), a non-listed REIT that invests in U.S.
income-generating assets. Blackstone Real Estate also operates one
of the leading global real estate debt businesses, providing
comprehensive financing solutions across the capital structure and
risk spectrum, including management of Blackstone Mortgage Trust
(NYSE: BXMT).
Forward-Looking Statements
Statements in this release
that are not historical facts are forward-looking statements,
within the meaning of the Private Securities Litigation Reform Act
of 1995 and involve risks and/or uncertainties, including those
described in the Company's public filings with the Securities and
Exchange Commission. 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 Company's expectations regarding the
closing of either transaction or any benefits expected to be
received as a result of the transactions. 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 the continued impact of the COVID-19 pandemic on the
Company's business, the 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.
CONTACTS:
MGM Resorts:
News Media
BRIAN AHERN
Director of Corporate Media
Relations
media@mgmresorts.com
Investment Community
CATHERINE PARK
Executive Director of Investor
Relations
cpark@mgmresorts.com
Blackstone:
Jeffrey
Kauth
(212) 583-5395
Jeffrey.Kauth@Blackstone.com
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SOURCE MGM Resorts International