MGM is acquiring Borgata Hotel Casino & Spa

MGM Resorts will invest US$900 million to obtain 50 percent of the Borgata Hotel Casino & Spa.

US.- MGM Resorts International and MGM Growth Properties –MGP– announced yesterday the beginning of the process to acquire Boyd Gaming Corporation’s 50 percent interest in Borgata Hotel Casino & Spa located in Atlantic City. Last January, Boyd Gaming invested US$50 million in the property’s renovations, which has been struggling a legal battle against Atlantic City’s government for a mutual debt.

The transaction, that is expected to end by the third quarter of this year, would be of US$900 million, if New Jersey’s authorities approved the regulation and other customary closing conditions. MGM will also take care of Borgata’s debt of US$600 million, which will be refinanced. After the initial transaction, MGM Resorts will sell all of Borgata’s real property to MGP for total consideration of approximately US$1.175 billion.

“We are pleased to demonstrate the ability for MGM Resorts and MGM Growth Properties to transact on an accretive basis to both parties and look forward to continue working collaboratively in the future,” stated Jim Murren, chairman and CEO of MGM Resorts International. And he continued: “Borgata is the premier resort in Atlantic City and a great addition to our growing presence in the Northeast. While the market continues to experience challenges, Borgata has outperformed and differentiated itself as the undisputed leader in the city. Our decade-long partnership with Boyd Gaming has been a great one, and Borgata’s talented employee base will complement and strengthen our more than 60,000-member worldwide MGM Resorts team. We are excited about the opportunity to bring our market-leading loyalty program, M life Rewards, to the resort and integrate our operations, to position Borgata for further growth.”