MGM Resorts International Anno – GuruFocus.com

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LAS VEGAS, July 1, 2021 / PRNewswire / – MGM Resorts International (“MGM Resorts” or the “Company”) (NYSE: MGM) today announced that it has entered into a definitive agreement to purchase the 50% interest of Infinity World Development Corp (“Infinity World”) in CityCenter Holdings, LLC for $ 2.125 billion. The purchase price represents an implicit valuation of $ 5.8 billion based on net debt of $ 1.5 billion, after giving effect to the close recently to sell of a two acre parcel. The agreement will make MGM Resorts the 100% owner of CityCenter on the Las Vegas Strip, which includes Aria Resort & Casino and Vdara Hotel and Spa.

“CityCenter has consistently raised the Las Vegas experience over the years, contributing to the undeniable position of this dynamic city as a leading tourist and business destination, ”said Bill hornbuckle, CEO and President of MGM Resorts. “Bringing together all of CityCenter under the MGM Resorts corporate structure and strategy will allow us to consolidate financial results, leverage efforts to strengthen our operating model and customer experience, and pursue our vision.” to become the world’s premier gaming entertainment company. ”

MGM Resorts has also entered into a definitive agreement with Blackstone to monetize the Aria and Vdara real estate assets, pending the completion of the share purchase agreement between MGM Resorts and Infinity World. Under the agreement, funds managed by Blackstone will acquire the Aria and Vdara properties for $ 3.89 billion in cash, which is a multiple of 18.1x the rent. Following the acquisition, both properties will be leased to MGM Resorts for an initial annual rent of $ 215 million.

Regarding the real estate deal with Blackstone, Hornbuckle added, “This transaction demonstrates the unprecedented premium value of our real estate assets and a testament to Aria and Vdara’s status as premier destinations on the Las Vegas Strip. We plan to continue to run our asset. -light strategy and use the proceeds of our real estate transactions to improve our financial flexibility and secure new growth opportunities. “

Tyler henritze, Head of US Acquisitions Americas for Blackstone Real Estate, said: “This transaction reflects our strong conviction Las Vegas and our strong partnership with MGM Resorts. CityCenter is a premier resort and a complementary addition to our portfolio of high quality assets on the Strip. We look forward to continuing our productive collaboration with MGM Resorts. “

Transactions are expected to close in the third quarter, subject to certain closing conditions. The closing of the Infinity World transaction is independent of the closing of the transaction with Blackstone.

PJT Partners is acting as exclusive financial advisor and Weil, Gotshal & Manges LLP is acting as legal advisor to MGM Resorts on both transactions. Moelis & Company LLC acts as exclusive financial advisor and Paul Hastings LLP as legal advisor to Infinity World. Simpson Thacher & Bartlett LLP is acting as legal counsel to Blackstone.

About MGM Resorts International
MGM Resorts International (NYSE: MGM) is a global S&P 500® entertainment company with national and international locations offering premier hotels and casinos, state-of-the-art meeting and conference spaces, entertainment experiences incredible live and theatrical performances, and a huge range of food, nightlife and retail offerings. MGM Resorts creates immersive and iconic experiences with its suite of Las Vegas-inspired brands. MGM Resorts’ portfolio includes 31 unique hotel and gaming destinations around the world, including some of the industry’s most recognizable resort brands. The company’s 50/50 business, BetMGM, LLC, offers sports betting and online gaming in the United States through market-leading brands including BetMGM and partypoker. The Company is currently pursuing a targeted expansion in Asia thanks to the resort opportunity integrated into Japan. Through its “Focus on What Matters: Embracing Humanity and Protecting the Planet” philosophy, MGM Resorts is committed to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, customers and the communities in which it operates. MGM Resorts international employees are proud that their company has been recognized as one of the World’s Most Admired Companies by FORTUNE® magazine. For more information, please visit us at www.mgmresorts.com. Please also connect with us @MGMResortsIntl on Twitter as good as Facebook and Instagram.

About Blackstone Real Estate
Blackstone is a world leader in real estate investing. Blackstone’s real estate business was founded in 1991 and manages investor capital of $ 196 billion. Blackstone is one of the largest real estate owners in the world, owning and operating assets in all major geographies and industries, including logistics, multi-family and single-family housing, office, hospitality and retail. Our opportunistic funds seek to acquire well-located and under-managed assets around the world. Blackstone’s Core + strategy invests in significantly stabilized real estate globally through regional open-ended funds focused on high-quality assets and Blackstone Real Estate Income Trust, Inc. (BREIT), a non-financial REIT. listed that invests in US income-generating assets. Blackstone Real Estate also operates one of the world’s leading real estate debt firms, providing comprehensive financing solutions for the entire capital structure and risk spectrum, including the management of Blackstone Mortgage Trust (NYSE: BXMT).

Forward-looking statements
Statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and / or uncertainties, including those described in the Company’s public documents with of the Securities and Exchange Commission. The Company has based its forward-looking statements on the current expectations and assumptions of management and not on historical facts. Examples of such statements include, but are not limited to, the Company’s expectations regarding the closing of any of the transactions or any benefits expected as a result of the transactions. These forward-looking statements involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those shown in these forward-looking statements include the continued impact of the COVID-19 pandemic on the Company’s business, the effects of economic and market conditions. market in the markets in which the Company operates and competes with other travel destinations through United States and globally, the design, timing and costs of expansion projects, risks associated with international operations, permits, licenses, financing, approvals and other contingencies related to growth in new or existing jurisdictions and the additional risks and uncertainties described in Company Form 10 -K, Forms 10-Q and Forms 8-K (including any modifications to such reports). By providing forward-looking statements, the Company assumes no obligation or obligation to publicly update such statements as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make further updates with respect to such other forward-looking statements.

CONTACTS:

MGM complexes:

Media
BRIAN AHERN
Director of Corporate Press Relations
[email protected]

Investment community
CATHERINE PARK
Executive Director of Investor Relations
[email protected]

Black stone:
Jeffrey Kauth
(212) 583-5395
[email protected]

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SOURCE MGM Resorts International



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