Gold strike tunica opened8/13/2023 ![]() Weil, Gotshal & Manges LLP served as legal counsel to MGM Resorts.Ĭalculated as net income of $47 million, adjusted for $3 million of depreciation and amortization, $7 million of property transactions, net, and $41 million of rent expense associated with triple-net operating leases. The Company expects net cash proceeds after taxes and estimated fees to be approximately $350 million. ![]() (NYSE: VICI) 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. At the closing of the transaction, MGM Resorts' master lease with VICI Properties, Inc. "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," said Jonathan Halkyard, CFO & Treasurer, MGM Resorts International.įor the year ended December 31, 2022, Gold Strike reported net income of $47 million and Adjusted Property EBITDAR of $98 million 1. "I wish Gold Strike well, and firmly believe a bright future is ahead for this property." "Gold Strike is an iconic property in Mississippi, and the employees there represent southern hospitality at its finest," said Bill Hornbuckle, CEO & President, MGM Resorts International. ![]() MGM Resorts International (NYSE: MGM) today announced it has closed on the sale of the operations of Gold Strike Tunica to CNE Gaming Holdings, L.L.C., a subsidiary of Cherokee Nation Businesses, for $450 million in cash. “We are pleased to welcome Cherokee Nation Businesses as our ninth gaming tenant, and we look forward to a long-term partnership as they pursue additional growth initiatives in the future.MGM Resorts International Sells Operations of Gold Strike Tunica Resort in Mississippi for $450 Million in Cash “This transaction continues to demonstrate Vici’s ability to build strong relationships with new partners while working collaboratively with existing tenants to support their strategic objectives,” Vici president and chief executive John Payne said. This lease would have an initial annual base rent of $40m, while other economic terms would primarily the same as the MGM Master Lease, including a base term of 25 years with three 10-year tenant renewal options. Vici also agreed to enter into a new separate lease with Cherokee Nation Businesses related to the operations of Gold Strike. Strategically, though, we decided to narrow our focus in Mississippi to a single resort – Beau Rivage – and dedicate more of our time and resources towards continuing to drive success at that leading, world-class resort and casino.”Ĭherokee Nation Businesses chief executive Chuck Garrett added: “We are excited about the opportunity to grow our gaming and hospitality businesses as we execute on our strategic growth plan to expand our presence outside of the Cherokee Nation Reservation.” “Gold Strike is a wonderful property with a bright future ahead. “I want to thank all of our Gold Strike employees who have consistently delivered world-class gaming and entertainment experiences to our guests,” MGM Resorts International chief executive and president Bill Hornbuckle said. MGM added that it expects net cash proceeds after taxes and estimated fees from the sale to be approximately $350m. Should the deal go through as expected, MGM Resorts’ master lease agreement with Vici Properties, which currently includes Gold Strike, will be amended to reduce annual rent by $40m. ![]() The transaction is expected to close in the first half of 2023, subject to regulatory approvals and other customary closing conditions. Gold Strike opened in 1994 and was acquired by MGM Resorts in 2005, Gold Strike Tunica has a casino, sportsbook, hotel, shops, several nightclubs and a number of restaurants.įor the twelve months ended 31 December 2021, Gold Strike posted net income of $81m and adjusted property earnings before interest, tax, depreciation, amortisation and rent (EBITDAR) of $115m.
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