Notícies de proveïdors
US – MGM to buy remaining shareholding in Borgata for $900m
By Phil - 1 de juny de 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 és el complex turístic més important d'Atlantic City i una gran addició a la nostra presència creixent al nord-est", va dir Jim Murren, president i director general de MGM Resorts International. “Tot i que el mercat continua experimentant reptes, Borgata s’ha superat i s’ha diferenciat com a líder indiscutible a la ciutat. La nostra col·laboració de deu anys amb Boyd Gaming ha estat excel·lent i la talentosa base d’empleats de Borgata complementarà i enfortirà el nostre equip de més de 60,000 membres a tot el món de MGM Resorts. Estem entusiasmats amb l'oportunitat de portar el nostre programa de fidelització líder al mercat, M life Rewards, al complex i integrar les nostres operacions, per posicionar Borgata per a un creixement posterior ".
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.
"Estem encantats d'afegir Borgata a la cartera de MGP, diversificant encara més la nostra presència geogràfica. Amb aquesta transacció, estem executant la nostra estratègia de creixement bàsic per construir prudentment una cartera d’actius d’alta qualitat amb posicions competitives líders en el mercat ”, va dir James Stewart, CEO de MGM Growth Properties. "Esperem que la transacció doni lloc a un percentatge elevat d'acreció d'un sol dígit a AFFO per acció, i el palanquejament net pro forma seguirà sent similar als nostres nivells actuals".
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.
"Les transaccions proporcionen nombrosos avantatges a MGM Resorts i creen un valor significatiu per als nostres accionistes", va dir Dan D'Arrigo, vicepresident executiu i director financer de MGM Resorts International. “Esperem que MGM Resorts es mantingui neutral en el palanquejament net, ja que consolidem completament els fluxos d'efectiu de Borgata a la cartera de MGM Resorts. De cara al futur, creiem que l’impacte de les transaccions continua sent coherent amb el nostre enfocament a desapalancar encara més el balanç. "
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.”
