LAS VEGAS—MGM Resorts International recently closed on the acquisition of Boyd Gaming Corporation’s interest in Borgata Hotel Casino & Spa in Atlantic City, NJ, for approximately $900 million.
Cash proceeds paid to Boyd Gaming for its interest were $589 million, after customary working capital adjustments and consideration of Borgata’s outstanding debt of $575 million. A portion of this debt was refinanced and then assumed by MGM Growth Properties, LLC, in connection with its acquisition of the real property associated with Borgata from MGM Resorts.
“As the premier resort in Atlantic City, Borgata is a great addition to our growing presence in the mid-Atlantic and Northeast U.S.,” said Jim Murren, chairman & CEO of MGM Resorts. “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 & COO of Borgata, said, “We welcome MGM Resorts as the new operator and are excited to further utilize its best-in-class brand to continually bring quality experiences to our guests.”
Murren added, “We have enjoyed working with Boyd Gaming since Borgata’s opening in 2003. We hold the company in the highest regard and wish them the best of luck in the future.”