MGM Resorts International announced it has closed on the sale of the operations of Gold Strike Tunica to CNE Gaming Holdings, a subsidiary of Cherokee Nation Businesses, for $450 million in cash.
“Gold Strike is an iconic property in Mississippi, and the employees there represent southern hospitality at its finest. I wish Gold Strike well, and firmly believe a bright future is ahead for this property,” Bill Hornbuckle, CEO and President of MGM Resorts International, said.
“We plan to use the proceeds from this transaction to further fortify our balance sheet, deploy capital to growth opportunities, and return capital to shareholders,” Jonathan Halkyard, CFO and Treasurer of MGM Resorts International, said.
For the year ended December 31, 2022, Gold Strike reported net income of $47 million and Adjusted Property EBITDAR of $98 million. At the closing of the transaction, MGM Resorts’ master lease with VICI Properties that currently includes the Gold Strike property will be amended to reduce the annual rent by $40 million to account for the Company’s sale of the operations of Gold Strike. The Company expects net cash proceeds after taxes and estimated fees to be approximately $350 million.
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