Eldorado Resorts, Inc. (NASDAQ:ERI) (“Eldorado,” “ERI,” or “the
Company”) and MGM Resorts International (NYSE:MGM) (“MGM”)
announced today that they have entered into a definitive agreement
for Eldorado to acquire MGM’s 50 percent interest in the Silver
Legacy Resort Casino Reno, as well as all of the assets of Circus
Circus Reno, for total consideration of $72.5 million cash, subject
to a working capital adjustment. In addition, ERI expects that it
will repay amounts outstanding under the Silver Legacy credit
facility, of which approximately $60 million was outstanding at
March 31, 2015 on a net debt basis. ERI and its affiliates already
own the other 50 percent interest in Silver Legacy. The
acquisitions are not subject to a financing condition and the
purchase price and repayment of the Silver Legacy credit facility
are expected to be funded by Eldorado through cash on hand and
future capital market or financing transactions.
Gary Carano, Chairman and Chief Executive Officer of Eldorado,
commented, “The acquisition of these well-established properties
represents a significant growth and expansion opportunity for
Eldorado and is consistent with our strategy to enhance shareholder
value by structuring transactions that are strategically and
economically attractive. The acquisition is expected to be
accretive to our operating results upon closing, builds the
critical mass of our gaming operations and fortifies our position
in the increasingly attractive Reno gaming market.”
The proposed transaction will increase Eldorado’s property
portfolio to seven wholly-owned and operated facilities in five
markets with a total of approximately 10,850 slot machines and
VLTs, approximately 310 table games, approximately 4,850 hotel
rooms, approximately 36 dining options, three pari-mutuel racing
facilities and approximately 8,600 team members.
"We greatly appreciate the hard work and dedication of our
employees at Circus Circus Reno and Silver Legacy," said Dan
D'Arrigo, Executive Vice President, Chief Financial Officer and
Treasurer of MGM Resorts. "MGM Resorts has enjoyed a long-standing
relationship with the Carano family, who share many of the same
core values as MGM. We believe that joining the Eldorado family
will provide our employees with significant opportunities to grow
and prosper."
Mr. Carano added, “With the acquisition of Silver Legacy and
Circus Circus Reno, we continue to execute our long-term plan for
expansion. Upon completing the transaction, we will own the three
leading downtown Reno casino resorts at a time when the Reno market
and the surrounding region is recovering and attracting new
businesses that should drive long-term economic support. I’m
confident that the talent of our operating team, our understanding
of the market -- and long-term success in Reno -- and our
company-wide focus on excellence in guest service, combined with
the market-leading amenities offered by Eldorado Reno, Silver
Legacy and Circus Circus Reno, will position our company as a
premier provider of casino gaming, entertainment, food and beverage
and hospitality offerings in the Reno market.”
Tom Reeg, President of Eldorado, concluded, “This acquisition is
another step toward our goal of expanding our property base and
driving shareholder value. Since the acquisition of the MTR Gaming
properties last September, we have made continuous progress in
integrating these properties into our portfolio. Our experience in
integrating MTR’s operations will serve us well as we welcome
Silver Legacy and Circus Circus Reno into our operating base. With
our proven management team, operating discipline and return-focused
approach to capital expenditures, we believe the acquisition of
Silver Legacy and Circus Circus Reno offers a meaningful
opportunity for Eldorado Resorts and our shareholders.”
The Silver Legacy is a Nevada mining themed hotel-casino and
entertainment complex which features an approximately 89,200-square
foot gaming floor with 1,340 slot machines, 63 table games, 1,711
hotel rooms (including 141 player suites, eight penthouse suites
and seven hospitality suites), a 50,000 square foot convention
center, a race and sports book, two fine dining restaurants, a
buffet, food court and four casual dining restaurants. Circus
Circus Reno is an iconic, circus-themed hotel-casino and
entertainment complex which features an approximately 56,000-square
foot gaming floor with 906 slot machines, 35 table games, 1,571
hotel rooms (including 67 mini suites, four executive suites and
four VIP suites), a sports book, two fine dining restaurants, a
buffet and three casual dining restaurants. Circus Circus Reno also
has a Midway featuring a total of 158 games and a full service
wedding chapel with reception services for groups of 25 or more.
Silver Legacy, Circus Circus Reno and the Company’s Eldorado Reno
property are seamlessly connected by a 200-foot wide skyway
corridor.
The transaction is subject to regulatory approvals and other
customary closing conditions. The transaction is expected to be
completed by year-end 2015.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities, nor shall there be any
sale of securities in any state or jurisdiction in which such
offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Eldorado Resorts, Inc.
Eldorado Resorts is a casino entertainment company that owns and
operates six properties in five states, including the Eldorado
Resort Casino and the Silver Legacy Resort Casino (a 50/50 joint
venture with MGM Resorts International) in Reno, NV; the Eldorado
Resort Casino in Shreveport, LA; Scioto Downs Racino in Columbus,
OH; Mountaineer Casino Racetrack & Resort in Chester, WV; and
Presque Isle Downs & Casino in Erie, PA. For more information,
please visit www.eldoradoresorts.com.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is one of the world's
leading global hospitality companies, operating a portfolio of
destination resort brands including Bellagio, MGM Grand, Mandalay
Bay and The Mirage. The Company is in the process of developing MGM
National Harbor in Maryland and MGM Springfield in Massachusetts.
The Company also owns 51 percent of MGM China Holdings Limited,
which owns the MGM Macau resort and casino and is developing a
gaming resort in Cotai, and 50 percent of CityCenter in Las Vegas,
which features Aria resort and casino. For more information about
MGM Resorts International, visit the Company's website at
www.mgmresorts.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements include statements regarding
the Company’s strategies, objectives and plans for future
development or acquisitions of properties or operations, as well as
expectations, future operating results and other information that
is not historical information. When used in this press release, the
terms or phrases such as “anticipates,” “believes,” “projects,”
“plans,” “intends,” “expects,” “might,” “may,” “estimates,”
“could,” “should,” “would,” “will likely continue,” and variations
of such words or similar expressions are intended to identify
forward-looking statements. Although the Company’s expectations,
beliefs and projections are expressed in good faith and with what
the Company’s believes is a reasonable basis, there can be no
assurance that these expectations, beliefs and projections will be
realized. There are a number of risks and uncertainties that could
cause the Company’s actual results to differ materially from those
expressed in the forward-looking statements including, but not
limited to the Company’s: substantial indebtedness and significant
financial commitments; ability to refinance its substantial
outstanding indebtedness on terms that are satisfactory to it, or
at all; restrictions and limitations in agreements governing its
debt; operations being in very competitive environments; consummate
the purchase of Circus Circus Reno and the 50% interest in Silver
Legacy; ability to obtain financing for the purchase of Circus
Circus Reno and the 50% interest in Silver Legacy; ability to
integrate the operations of Circus Circus Reno, the Silver Legacy
and the MTR Gaming properties; dependence on its Nevada, Louisiana,
West Virginia, Pennsylvania and Ohio casinos; sensitivity to
reductions in discretionary consumer spending and changes in
general economic and market conditions; gaming operations being
highly regulated by governmental authorities and the high cost of
complying or the impact of failing to comply with such regulations;
inability to realize cost savings or revenues or to implement
integration plans and other consequences associated with mergers
and acquisitions; exposure to increases in gaming taxes and fees in
jurisdictions in which the Company operates; risks relating to
pending claims or future claims; exposure to changes in interest
rates and capital and credit markets; ability to comply with
certain covenants in its debt documents; exposure to disruptions to
its information technology and other systems and infrastructure;
construction factors relating to maintenance and expansion of
operations; ability to attract and retain customers; exposure to
weather or road conditions limiting access to its properties;
exposure to war, terrorist activity, natural disasters and other
catastrophic events; and the intense competition to attract and
retain management and key employees in the gaming industry. These
forward-looking statements speak only as of the date of this press
release and neither the Company nor MGM intend to update publicly
any forward-looking statement to reflect events or circumstances
that occur after the date on which the statement is made, except as
may be required by law.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150707006589/en/
Eldorado Resorts, Inc.Thomas Reeg,
775-328-0112Presidentinvestorrelations@eldoradoresorts.comorMGM
Resorts International Corporate CommunicationsYvette Monet,
702-491-6426orJCIRJoseph N. JaffoniRichard
Land212-835-8500eri@jcir.com
MGM Resorts (NYSE:MGM)
Historical Stock Chart
From Mar 2024 to Apr 2024
MGM Resorts (NYSE:MGM)
Historical Stock Chart
From Apr 2023 to Apr 2024