Vijesti o dobavljačima
US – MGM to buy remaining shareholding in Borgata for $900m
By Phil - 1. lipnja 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 je glavno odmaralište u Atlantic Cityju i sjajan dodatak našoj rastućoj prisutnosti na sjeveroistoku", rekao je Jim Murren, predsjednik i izvršni direktor MGM Resorts International. „Iako se tržište i dalje suočava s izazovima, Borgata je nadmašio i istaknuo se kao neprikosnoveni lider u gradu. Naše desetljeće dugo partnerstvo s Boydom Gamingom bilo je sjajno, a Borgatina nadarena baza zaposlenika nadopunit će i ojačati naš više od 60,000 XNUMX članova svjetskog tima MGM Resorts. Uzbuđeni smo zbog mogućnosti da dovedemo naš vodeći program vjernosti na tržištu, M life Rewards, u odmaralište i integriramo naše poslovanje, kako bismo Borgata pozicionirali za daljnji rast. "
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.
“Uzbuđeni smo što ćemo dodati Borgatu u portfelj MGP-a, dodatno diverzificirajući našu geografsku prisutnost. Ovom transakcijom izvršavamo našu osnovnu strategiju rasta u razboritoj izgradnji portfelja visokokvalitetne imovine s vodećim tržišnim konkurentnim pozicijama “, rekao je James Stewart, izvršni direktor MGM Growth Properties. "Očekujemo da će transakcija rezultirati visokim jednoznamenkastim postotkom prirasta AFFO-u po dionici, a pro forma neto poluga ostat će slična našim trenutnim razinama."
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.
"Transakcije pružaju brojne pogodnosti MGM Resorts i stvaraju značajnu vrijednost za naše dioničare", rekao je Dan D'Arrigo, izvršni potpredsjednik i financijski direktor MGM Resorts International. „Očekujemo da će MGM Resorts ostati neto neutralan prema poluzi, budući da u potpunosti konsolidiramo novčane tokove Borgate u portfelj MGM Resorts. Gledajući unaprijed, vjerujemo da će učinak Transakcija ostati u skladu s našim fokusom na daljnje razduživanje bilance. "
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.”
