MGM to Buy Boyd's Borgata Stake
May 31 2016 - 5:20PM
Dow Jones News
Boyd Gaming Corp. agreed to sell its 50% stake in Atlantic
City's Borgata Hotel Casino & Spa to its partner, MGM Resorts
International.
In turn, MGM will sell Borgata's real property to the
real-estate investment trust that spun off from the casino company
and went public in April.
MGM will pay about $600 million for Boyd's stake, after
consideration of Borgata's outstanding debt of about $600 million,
which MGM will assume and refinance.
Borgata's real property will then be sold to MGM Growth
Properties LLC for about $1.175 billion.
Boyd said, "While we are pleased with the performance of this
property, this transaction is an attractive opportunity to
immediately unlock significant value for our shareholders."
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
May 31, 2016 17:05 ET (21:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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