NATIONAL HARBOR, Md., July 18,
2016 /PRNewswire/ -- MGM National Harbor, the $1.3 billion luxury resort on the Potomac River
being developed by MGM Resorts International (NYSE: MGM), announces
the establishment of a new investment opportunity open to
residents1 of Prince George's
County, Maryland (the "County") and to Minority Business
Enterprises2 located in the County and State of Maryland (the "Aspire Program"). The
offering is being made by Aspire Holdings, LLC ("Aspire"), the
newly formed entity that will own certain non-voting interests in
MGM National Harbor, pursuant to Rule 506(c) of Regulation D under
the Securities Act of 1933, as amended (the "Securities
Act"). The property is scheduled to open in the fourth
quarter of 2016, as the newest addition to the MGM Resorts
International portfolio of world-renowned resort and entertainment
destinations.
The Aspire Program will target up to $30
million of investments from County Residents and up to
$10 million of investments from MBEs,
with investors who meet both criteria counted toward both
categories. Eligible participants must also be accredited
investors under the Securities Act. Generally, individuals
are considered accredited investors if they have a net worth
greater than $1 million (excluding
the value of the primary residence) or an individual income in
excess of $200,000 (or joint spousal
income exceeding $300,000) for the
previous two years and expected for the current year.
"We are pleased that we are able to engage residents of
Prince George's County and MBEs in
connection with the development process for MGM National Harbor.
The Aspire Program is further evidence of our commitment to being a
community partner and creates a unique opportunity for economic
participation in the casino resort," said Lorenzo D. Creighton, President and Chief
Operating Officer, MGM National Harbor.
The following provides an overview of the Aspire Program:
- The Aspire Program will be open to a maximum of 90 investors
and the offer will remain open until September 2, 2016.
- Each prospective investor will subscribe to a specific
investment tier, ranging from $100,000 to
$5,000,000, which will be allocated on a first come first
serve basis.
- Aspire will be entitled to receive preferred distributions from
MGM National Harbor that are equal to 0.50% of MGM National
Harbor's annual net gaming revenue (to the extent the full
$40 million of Aspire's limited
liability company units are issued (which percentage will be
adjusted pro rata to the extent less than $40 million of units are issued)).
- Distributions will be made only after the resort casino is open
and operational.
The Aspire Program is a first-in-kind offering by a gaming
company in the State, and is geared toward providing qualified,
local investors economic participation in the historic MGM National
Harbor project. In addition to the Aspire Program, MGM National
Harbor engages County Residents and MBEs through its workforce and
supplier diversity efforts. The company is responsible for creating
approximately 2,000 construction workforce jobs during development
and expects to create an additional 3,600 operations workforce jobs
once open. As of the first quarter of 2016, MBE participation on
the project was at 34 percent, according to the Community Benefits
Agreement Quarterly Report.
MGM National Harbor is subject to the Maryland State Lottery
Video Lottery Terminal Law (the "Maryland VLT Law") and other laws
and regulations applicable to gaming companies operating in the
state of Maryland. These laws impose detailed substantive and
procedural requirements related to ongoing operations, including
provisions allowing for background investigations and the ability
of the Maryland Lottery and Gaming Control Agency to require any
person holding an interest in MGM National Harbor to be licensed or
found qualified. As a result of these regulations, prospective
investors will be required to undergo a background check by MGM
National Harbor or its parent company, and the Maryland Lottery and
Gaming Control Agency has the right to review any and all
information collected during the course of the background
checks.
Aspire has engaged the services of EarlyIQ to determine the
eligibility of prospective investors to invest in the Aspire
Program. Prospective investors interested in investing in
Aspire should visit www.earlyiq.com/partner/mgm/nationalharbor to
learn more about the offering and whether they are eligible to
participate. Prior to subscribing to the offering, eligible
prospective investors will be required to demonstrate that they are
accredited investors in accordance with the procedures outlined by
the Securities and Exchange Commission (the "SEC") and that they
meet certain other criteria established by Aspire.
Aspire will be formed solely to hold non-voting interests in MGM
National Harbor. As a result, Aspire will be entitled to receive
preferred distributions from MGM National Harbor that are equal to
0.50% of MGM National Harbor's annual net gaming revenue (to the
extent the full $40 million of
Aspire's limited liability company units are issued (which
percentage will be adjusted pro rata to the extent less than
$40 million of units are issued)) as
further described in the offering material available at
www.earlyiq.com/partner/mgm/nationalharbor. Investing in the
securities of Aspire involves significant risks and uncertainties
and investors are advised to carefully review the offering
materials provided at www.earlyiq.com/partner/mgm/nationalharbor.
Neither the non-voting interests in MGM National Harbor nor the
membership interests in Aspire have been or will be registered
under the Securities Act, any state securities laws or the
securities laws of any other jurisdiction. The SEC has not passed
upon the merits of or given its approval to the securities, the
terms of the offering or the accuracy and completeness of any of
the offering materials. The membership interests in Aspire are
being offered only to investors able to evaluate the merits and
risks, including illiquidity, of an investment in the membership
interests. In addition, the membership interests will be subject to
legal restrictions on transfer and resale and investors should not
assume they will be able to resell their securities. This
advertisement does not constitute an offer to sell nor a
solicitation to purchase in any jurisdiction in which such an offer
or solicitation is not authorized and does not constitute an offer
within any jurisdiction to any person to whom such an offer would
be unlawful.
1 Residents of Prince
George's County as defined under section 10A-101(a)(14.2) of
the Prince George's County Code of Ordinances ("County
Residents").
2 Minority Business Enterprises
("MBE") as defined under Title 14, Subtitle 3 of the Maryland State
Finance and Procurement Article (the "Article").
About MGM National Harbor
The newest addition to the MGM Resorts International
portfolio, MGM National Harbor's unrivaled setting offers stunning
panoramic views of the eastern shore of the Potomac River in
Maryland. The $1.3 billion resort sits a short distance from
Washington, D.C. to the north and
historic sites, including George
Washington's Mount Vernon
estate across the river in Virginia. The 24-story, 308-room resort will
feature premier amenities and experiences for locals as well as
visitors from around the world including a dynamic casino with over
125,000 square feet of space that includes slots, table games and
poker; a world-class spa and salon; an entertainment theater with
flexible seating for up to 3,000; high-end branded retail; 27,000
square feet of meeting space; and restaurants from renowned local,
national and international chefs.
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.
MGM Resorts controls, and holds a 73 percent economic interest in
the operating partnership of MGM Growth Properties LLC (NYSE: MGP),
a premier triple-net lease real estate investment trust engaged in
the acquisition, ownership and leasing of large-scale destination
entertainment and leisure resorts. The Company also owns 51 percent
of MGM China Holdings Limited (HK: 2282), 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 & Casino. MGM Resorts
is named among FORTUNE® Magazine's 2016 list of World's Most
Admired Companies®. For more information about MGM Resorts
International, visit the Company's website at
www.mgmresorts.com.
Statements in this release that are not historical facts are
forward-looking statements. MGM National Harbor has based
forward-looking statements on management's current expectations and
assumptions and not on historical facts. Examples of these
statements include, but are not limited to, statements regarding
the development of MGM National Harbor. These forward-looking
statements involve a number of risks and uncertainties. Among the
important factors that could cause actual results to differ
materially from those indicated in such forward-looking statements
include effects of economic conditions and market conditions in the
markets in which MGM National Harbor operates and competition with
other destination travel locations throughout the United States and the world, the design,
timing and costs of expansion projects, risks relating to
international operations, permits, licenses, financings,
approvals and other contingencies in connection with growth in new
or existing jurisdictions and additional risks and uncertainties
described in MGM Resorts International's Form 10-K, Form 10-Q and
Form 8-K reports (including all amendments to those reports) and in
the private placement memorandum related to this offering available
at https://www.earlyiq.com/partner/mgm/nationalharbor. In
providing forward-looking statements, MGM National Harbor is not
undertaking any duty or obligation to update these statements
publicly as a result of new information, future events or
otherwise, except as required by law.
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SOURCE MGM Resorts International