LAS
VEGAS, Dec. 19, 2022 /PRNewswire/ -- MGM Resorts
International (NYSE: MGM) ("MGM Resorts" or the "Company") today
announced it has closed on the sale of the operations of The Mirage
Hotel & Casino ("The Mirage") to Hard Rock International ("Hard
Rock") for $1.075 billion in
cash.
"Mirage employees have delivered unparalleled service and
experiences over the past three decades, and we are forever
thankful for their work to make The Mirage such an iconic,
world-class destination," said Bill
Hornbuckle, CEO & President, MGM Resorts International.
"I'm excited for the opportunities that lay ahead for the property,
its people and the entire Las Vegas Strip with this prime location
now under Hard Rock's leadership. We're thrilled to welcome Hard
Rock to the neighborhood and wish them all the very best."
"The closing of this transaction represents another important
step in the pursuit of our long-term strategic objectives," said
Jonathan Halkyard, CFO &
Treasurer, MGM Resorts International. "We plan to use the proceeds
from this transaction to further advance our capital allocation
strategy which includes maintaining a strong balance sheet,
pursuing targeted growth opportunities and returning cash to our
shareholders."
For the twelve months ended December 31,
2019, The Mirage reported Adjusted Property EBITDAR of
$154 million. At the closing of the
transaction, MGM Resorts' master lease that currently includes The
Mirage property will be amended to reduce the annual rent by
$90 million. The Company expects net
cash proceeds after taxes and estimated fees to be approximately
$815 million.
VICI, as the real estate owner of The Mirage will enter into a
new lease agreement with Hard Rock.
Under the terms of the agreement, MGM Resorts will retain The
Mirage name and brand, licensing it to Hard Rock royalty-free for a
maximum period of three years while it finalizes its plans to
rebrand the property.
BofA Securities and PJT Partners served as financial advisors
and Weil, Gotshal & Manges LLP served as legal counsel 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 33 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, and the Company's subsidiary
LeoVegas AB offers sports betting and online gaming through
market-leading brands in several jurisdictions throughout
Europe. 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.
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, as amended, and involve
risks and/or uncertainties, including those described in the
Company's public filings with the Securities and Exchange
Commission. Forward-looking statements can be identified by the use
of forward-looking terminology such as "believes," "expects,"
"could," "may," "will," "should," "seeks," "likely," "intends,"
"plans," "pro forma," "projects," "estimates" or "anticipates" or
the negative of these words and phrases or similar words or phrases
that are predictions of or indicate future events or trends and
that do not relate solely to historical matters. 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 the sale and any benefits
expected to be received from the sale, including the Company's
expected net cash proceeds. Forward-looking statements depend on
assumptions, data or methods that may be incorrect or imprecise,
and the Company may not be able to realize them. The Company does
not guarantee that the transaction or other events described herein
will happen as described (or that they will happen at all). 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 risks related to the Company's
ability to complete the transaction on the terms described herein
or all, the satisfaction of the closing conditions, including the
receipt of regulatory approvals, to which the completion of the
transaction is subject, which could delay or prevent the completion
of the transaction, 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.
Non-GAAP Financial
Measures
This press release includes Adjusted Property EBITDAR for Gold
Strike Tunica, which is a "non-GAAP financial measure" as defined
in Regulation G under the Securities Exchange Act of 1934, as
amended. Schedules that reconcile the non-GAAP financial measure
for 2019 to the most directly comparable financial measure
calculated and presented in accordance with Generally Accepted
Accounting Principles in the United
States are available in the Company's earnings release,
dated February 12, 2020, that was
furnished with the SEC and is available on our website
at www.mgmresorts.com. In addition, this press release
includes a multiple based on average Adjusted Property EBITDA.
Adjusted Property EBITDA is Adjusted Property EBITDAR less rent of
$40 million. For a reconciliation of
2021 Adjusted Property EBITDAR to net income see footnote 1 to this
press release.
MGM RESORTS CONTACTS
Investment Community:
ANDREW
CHAPMAN, Director of Investor Relations
(702) 693-8711, achapman@mgmresorts.com
News Media:
BRIAN
AHERN, Executive Director of Communications
media@mgmresorts.com
View original
content:https://www.prnewswire.com/news-releases/mgm-resorts-international-announces-completion-of-the-sale-of-the-operations-of-the-mirage-301705869.html
SOURCE MGM Resorts International