MGM Resorts Worldwide (NYSE: MGM) right now introduced it has closed on the sale of the operations of Gold Strike Tunica to CNE Gaming Holdings, L.L.C., a subsidiary of Cherokee Nation Companies, for $450 million in money.
“Gold Strike is an iconic property in Mississippi, and the workers there signify southern hospitality at its most interesting,” mentioned Invoice Hornbuckle, CEO & President, MGM Resorts Worldwide. “I want Gold Strike properly, and firmly imagine a vivid future is forward for this property.”
“We plan to make use of the proceeds from this transaction to additional fortify our steadiness sheet, deploy capital to development alternatives, and return capital to shareholders,” mentioned Jonathan Halkyard, CFO & Treasurer, MGM Resorts Worldwide.
For the 12 months ended December 31, 2022, Gold Strike reported web earnings of $47 million and Adjusted Property EBITDAR of $98 million1. On the closing of the transaction, MGM Resorts’ grasp lease with VICI Properties, Inc. (NYSE: VICI) that at present consists of the Gold Strike property shall be amended to cut back the annual lease by $40 million to account for the Firm’s sale of the operations of Gold Strike. The Firm expects web money proceeds after taxes and estimated charges to be roughly $350 million.
Weil, Gotshal & Manges LLP served as authorized counsel to MGM Resorts.
Calculated as web earnings of $47 million, adjusted for $3 million of depreciation and amortization, $7 million of property transactions, web, and $41 million of lease expense related to triple-net working leases.