LAS
VEGAS, Feb. 15, 2023 /PRNewswire/ -- MGM
Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company")
today announced it has closed on the sale of the operations of Gold
Strike Tunica ("Gold Strike") to CNE Gaming Holdings, L.L.C., a
subsidiary of Cherokee Nation Businesses, for $450 million in cash.
"Gold Strike is an iconic property in Mississippi, and the employees there represent
southern hospitality at its finest," said Bill Hornbuckle, CEO & President, MGM
Resorts International. "I wish Gold Strike well, and firmly believe
a bright future is ahead for this property."
"We plan to use the proceeds from this transaction to further
fortify our balance sheet, deploy capital to growth opportunities,
and return capital to shareholders," said Jonathan Halkyard, CFO & Treasurer, MGM
Resorts International.
For the year ended December 31,
2022, Gold Strike reported net income of $47 million and Adjusted Property EBITDAR of
$98 million1. At the
closing of the transaction, MGM Resorts' master lease with VICI
Properties, Inc. (NYSE: VICI) that currently includes the Gold
Strike property will be amended to reduce the annual rent by
$40 million to account for the
Company's sale of the operations of Gold Strike. The Company
expects net cash proceeds after taxes and estimated fees to be
approximately $350 million.
Weil, Gotshal & Manges LLP served as legal counsel to MGM
Resorts.
1
|
Calculated as net
income of $47 million, adjusted for $3 million of depreciation and
amortization, $7 million of property transactions, net, and $41
million of rent expense associated with triple-net operating
leases.
|
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 sports betting and online gaming
in North America 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 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 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. For a reconciliation of Adjusted Property EBITDAR to net
income see footnote 1 to this press release.
MGM RESORTS CONTACTS
Investment Community:
SARAH
ROGERS, Senior Vice President of Corporate Finance
(702) 730-3942, srogers@mgmresorts.com
ANDREW CHAPMAN, Director of
Investor Relations
(702) 693-8711, achapman@mgmresorts.com
News Media:
BRIAN
AHERN, Executive Director of Communications
media@mgmresorts.com
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SOURCE MGM Resorts International