MGM Resorts completes acquisition of Boyd Gaming’s Borgata stake
MGM Resorts International has completed its previously announced acquisition of Boyd Gaming Corporation’s 50% stake in Borgata Hotel Casino and Spa, for an approximate total of $900m.
MGM Resorts paid $589m in cash for the transaction, following consideration of Borgata’s outstanding debts of $575m.
Boyd Gaming has confirmed its intention to use the proceeds of the sale for “debt reduction and general corporate purposes.”
Although MGM Resorts has now purchased the remaining 50% in Borgata that it did not already hold, it will not be sole owner of the Atlantic City casino, with MGM Growth Properties acquiring Borgata’s real property from MGM Resorts.
The real property has in turn been leased back to an MGM Resorts subsidiary that will operate the property.
“As the premier resort in Atlantic City, Borgata is a great addition to our growing presence in the mid-Atlantic and Northeast United States,” said Chairman and CEO of MGM Resorts, Jim Murren.
“We are excited to welcome the talented Borgata leadership team and employees into MGM Resorts and look forward to serving guests with new and exciting opportunities through our diverse resort offerings, entertainment dominance and market leading loyalty program, M life Rewards.”
Tom Ballance, President and COO of Borgata, added: “We welcome MGM Resorts as the new operator and are excited to further utilise its best-in-class brand to continually bring quality experiences to our guests.”
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