MGM Resorts International
November 8th, 2023
Announces Final Sale Of Gold Strike Tunica
MGM Resorts International announced yesterday that it has sold Gold Strike Tunica's operations to CNE Gaming Holdings, a subsidiary of Cherokee National Business, for $450 million in cash.
Bill Hornbuckle, CEO and President of MGM Resorts International, said, "Gold Strike is an iconic building in Mississippi, and its employees represent the hospitality of the South at its finest," adding, "We wish Gold Strike well, and we firmly believe that a bright future awaits this building."
For the year ended December 31, 2022, Gold Strike Casino Resort reported net income of $47 million and adjusted property EBITDAR of $98 million. At the close of the transaction, MGM Resorts' master lease with VICI Properties, Inc., which currently includes Gold Strike properties, will be amended to reduce annual rent by $40 million to account for the sale of the company's Gold Strike operations. The company expects net cash income after taxes and estimated fees to be approximately $350 million.
"We intend to use the proceeds from this transaction to further strengthen our balance sheet, deploy capital to growth opportunities, and return capital to shareholders," said Jonathan Halkyard, chief financial officer and treasurer of MGM Resorts International.
Weil, Gotshal & Manges LLP served as legal advisor to MGM Resorts.