Boyd Gaming To Sell Its 50 Percent Interest In Borgata to MGM Resorts
Boyd Gaming has announced that it has entered into an agreement to sell its 50% equity interest in the parent company of Borgata in Atlantic City to MGM Resorts International for consideration of $900 million, as well as a 50% share of any future property tax settlement benefits received by Borgata.
According to a press release posted just after 4:00 Tuesday afternoon, Boyd Gaming expects to initially receive approximately $600 million in net cash from the transaction, after deducting its share of Borgata's currently outstanding debt.
Those initial proceeds do not include Boyd Gaming's potential share of future property tax settlement benefits. Borgata estimates that it is entitled to property tax refunds totaling $180 million.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said:
"The consistent success of Borgata is a tribute to the entire Borgata team, as they have continued to outperform an evolving and challenging Atlantic City market. We thank them for their tremendous contributions to Borgata and Boyd Gaming, and we wish them continued success as they join the MGM team."
The transaction is expected to close in the third quarter, at which point MGM will fully own Borgata and assume oversight of the property's day-to-day operations.
SOURCE: PR Newswire