MGM Resorts To Sell The Mirage To Hard Rock International

MGM Resorts International announced an agreement to sell the operations of The Mirage Hotel & Casino to Hard Rock International for $1.075 billion in cash, subject to customary working capital adjustments.

“This is an important milestone for MGM Resorts and Las Vegas,” said Bill Hornbuckle, CEO and president of MGM Resorts International. “As part of the team that opened The Mirage in 1989, I know firsthand how special it is and what a great opportunity it presents for the Hard Rock team. I want to thank all the Mirage staff for consistently providing our guests with a world-class gaming and entertainment experience for more than 30 years.”

“This announcement marks the culmination of a series of innovative deals at MGM Resorts over the past few years,” said Paul Salem, Chairman of MGM Resorts International’s Board of Directors. “Monetization of the entire real estate portfolio, along with the agreement to acquire City Center and Cosmopolitan in Las Vegas, will place the Company with a fortress balance sheet, top portfolio and critical financial resources to pursue strategic objectives.”

For the 12-month period ended Dec. 31, 2019, The Mirage reported adjusted real estate EBITDA of $154 million. At the close of the transaction, the master lease at MGM Resorts, which currently includes The Mirage Realty, will be revised to reduce annual rent by $90 million. The company expects net cash income after taxes and expected fees to be approximately $815 million. 온라인경마

“This is a fantastic outcome for the company as we are able to realign the priorities of our future capital expenditures to opportunities to improve the customer experience at other locations in Las Vegas,” said Jonathan Halkyad, CFO and Head of Finance at MGM Resorts International. “We appreciate VICI as the property owner of The Mirage by working constructively with Hard Rock to facilitate new leases once the acquisition of MGM Growth Properties is completed.”

“With regard to the use of the proceeds, we will remain a disciplined capital allocator to maximize shareholder value. This consists of maintaining a strong balance sheet, returning cash to shareholders, and pursuing targeted growth opportunities that advance our vision as the world’s leading gaming entertainment company,” concluded Halkyard

Mirage was opened in 1989 and was acquired by MGM Resorts in 2000. Located at the center of the Las Vegas strip, the iconic building is known worldwide for its dynamic entertainment options as well as the 90-foot strip side volcano.

Under the terms of the agreement, MGM Resorts will retain The Mirage’s name and brand, while granting licenses to Hard Rock Royalty Free for up to three years, concluding its real estate rebranding plan.

The transaction is expected to close in the second half of 2022, subject to regulatory approvals and other customary closing conditions. BofA Securities and PJT Partners served as financial advisers, and Weil, Gotshal & Manges LLP served as legal counsel to MGM Resorts.

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