MGM Resorts International Announces Final Sale Of Gold Strike Tunica
MGM Resorts International announced yesterday that it has decided to sell Gold Strike Tunica's operations to CNE Gaming Holdings, L.L.C., a subsidiary of Cherokee Nation Business, for $450 million in cash. "Gold Strike is an iconic Mississippi property, and its employees represent the best hospitality in the South," said Bill Hornbuckle, CEO and President of MGM Resorts International. "We wish Gold Strike well, and we firmly believe a bright future for this property awaits." For the year ended December 31, 2022, Gold Strike Casino Resort reported net income of $47 million and adjusted real estate EBITDA of $98 million. At the end of the transaction, MGM Resort's master lease with VICI Properties, Inc., which currently includes Gold Strike properties, will be amended to reduce annual rent by $40 million, taking into account the sale of the Company's Gold Strike operations. The Company expects net cash earnings of approximately $350 million, excluding taxes and expected fees. "We intend to use the proceeds from this transaction to further strengthen our balance sheet, inject capital into growth opportunities, and return capital to our shareholders," said Jonathan Halkyard, CFO & Treasurer at MGM Resorts International. Weil, Gotshal & Manges LLP served as legal counsel to MGM Resorts.