Aħbarijiet tal-Fornitur
US – MGM to buy remaining shareholding in Borgata for $900m
By Phil - 1 ta' Ġunju 2016
MGM Resorts is buying the rest of Boyd Gaming’s 50 per cent interest in Borgata Hotel Casino & Spa in Atlantic City, New Jersey for consideration of $900m.
Further, MGM Resorts will buy 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.
It will pay $600mfor Boyd Gaming’s 50 per cent interest, subject to customary working capital adjustments, after consideration of Borgata’s outstanding debt of approximately $600 million, which MGM Resorts will assume and refinance. For the last twelve months ended March 31, 2016, Borgata reported $812m in net revenues and $212m in Adjusted EBITDA.
"Borgata hija l-aqwa resort f'Atlantic City u żieda kbira għall-preżenza dejjem tikber tagħna fil-Grigal," qal Jim Murren, Chairman u CEO ta 'MGM Resorts International. “Filwaqt li s-suq qed ikompli jesperjenza sfidi, Borgata qabeż u ddifferenzjat ruħha bħala l-mexxej mhux ikkontestat fil-belt. Is-sħubija tagħna għal għaxar snin ma’ Boyd Gaming kienet waħda mill-aqwa, u l-bażi ta’ impjegati b’talent ta’ Borgata se tikkumplimenta u ssaħħaħ it-tim tagħna ta’ aktar minn 60,000 membru MGM Resorts madwar id-dinja. Ninsabu eċċitati bl-opportunità li nġibu l-programm ta’ lealtà tagħna li jwassal fis-suq, M life Rewards, fir-resort u nintegraw l-operazzjonijiet tagħna, biex nippożizzjonaw lil Borgata għal aktar tkabbir.”
Subsequent to the purchase of Boyd Gaming’s 50 per cent stake in Borgata, MGM Resorts and MGP have agreed that MGM Resorts will sell all of Borgata’s real property to MGP for total consideration of approximately $1.175bn.
“Aħna eċċitati li nżidu lil Borgata mal-portafoll tal-MGP, u niddiversifikaw aktar il-preżenza ġeografika tagħna. B’din it-tranżazzjoni, qed inwettqu l-istrateġija ewlenija tagħna ta’ tkabbir fil-bini prudenti ta’ portafoll ta’ assi ta’ kwalità għolja b’pożizzjonijiet kompetittivi li jwasslu fis-suq,” qal James Stewart, CEO ta’ MGM Growth Properties. "Aħna nistennew li t-tranżazzjoni tirriżulta f'akkumulazzjoni għolja ta' perċentwali ta' ċifra waħda għal AFFO għal kull sehem, u l-ingranaġġ nett pro forma se jibqa' simili għal-livelli attwali tagħna."
Borgata will be added to the existing Master Lease between MGM Resorts and MGM Growth Properties Resorts, and the initial rent payment to MGP will increase by $100m. Consistent with the Master Lease terms, 90 percent of this rent will be fixed and contractually grow at two per cent per year until 2022.
"It-Tranżazzjonijiet jipprovdu bosta benefiċċji lil MGM Resorts u joħolqu valur sinifikanti għall-azzjonisti tagħna," qal Dan D'Arrigo, Viċi President Eżekuttiv u CFO ta' MGM Resorts International. “Nistennew li MGM Resorts jibqgħu newtrali mill-ingranaġġ nett, hekk kif nikkonsolidaw bis-sħiħ il-flussi tal-flus ta’ Borgata fil-portafoll tal-MGM Resorts. B'ħarsa 'l quddiem, nemmnu li l-impatt tat-Tranżazzjonijiet jibqa' konsistenti mal-fokus tagħna fuq aktar tnaqqis tal-ingranaġġ tal-karta tal-bilanċ.”
Mr. Murren added: “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.”
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “The development and opening of Borgata in 2003 was an important step in the evolution and growth of Boyd Gaming. Under our leadership, Borgata firmly established itself as the East Coast’s most popular and successful entertainment resort throughout the last 13 years. While we are pleased with the performance of this property, this transaction is an attractive opportunity to immediately unlock significant value for our shareholders. We intend to use the proceeds to reduce debt, further strengthening our balance sheet and accelerating the timeline for reaching our leverage target of four to five times debt to Adjusted EBITDA.”
Mr. Smith added: “The consistent success of Borgata is a tribute to the entire Borgata team, as they have continued to outperform an evolving and challenging Atlantic City market. We thank them for their tremendous contributions to Borgata and Boyd Gaming, and we wish them continued success as they join the MGM team.”
