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MGM Resorts Sells Gold Strike Tunica Operations For $450M

Benzinga · 06/10/2022 08:41
  • MGM Resorts International (NYSE:MGM) has decided to sell the operations of Gold Strike Tunica to Cherokee Nation Entertainment Gaming Holdings LLC (CNE), a subsidiary of Cherokee Nation Businesses, for $450 million in cash.
  • The company expects net cash proceeds after taxes and estimated fees to be about $350 million. 
  • For the twelve months ended December 31, 2021, Gold Strike reported a net income of $81.1 million and Adjusted Property EBITDAR of $115 million.
  • MGM's master lease agreement with VICI Properties Inc (NYSE:VICI) will be amended to reduce annual rent by $40 million to account for the sale of the operations of Gold Strike.
  • The transaction is expected to close in the first half of 2023.
  • "Gold Strike is a wonderful property with a bright future ahead. Strategically, though, we decided to narrow our focus in Mississippi to a single resort – Beau Rivage – and dedicate more of our time and resources towards continuing to drive success at that leading, world-class resort and casino," said CEO Bill Hornbuckle.
  • Price Action: MGM shares closed 3.04% lower at $34.32 on Thursday.
  • Photo Via Wikimedia Commons