New York-listed MGM Resorts International has announced it has entered into a definitive agreement to acquire the remaining interest held by Boyd Gaming in the Borgata Hotel Casino & Spa in Atlantic City.
In a filing to the New York Stock Exchange, MGM Resorts will pay approximately $600 million for Boyd Gaming’s 50 percent interest, after consideration of Borgata’s outstanding debt of approximately $600 million, which MGM Resorts will assume and refinance.
For the twelve months ended March 31, 2016, Borgata reported $812 million in net revenues and $212 million in Adjusted EBITDA.
Following the completion of the acquisition, MGM Growth Properties (MGP) will acquire Borgata’s real property from MGM Resorts and lease back the real property to a subsidiary of MGM Resorts, after which a subsidiary of MGM Resorts will operate Borgata.
“We are excited to add Borgata to the MGP portfolio, further diversifying our geographic presence. With this transaction, we are executing on our core growth strategy in prudently building a portfolio of high-quality assets with market leading competitive positions,” said James Stewart, CEO of MGM Growth Properties.
The transactions are expected to close in 16Q3, “subject to regulatory approvals and other customary closing conditions”.