6/24/2023 0 Comments Gold strike tunica new years eveThe Company expects net cash proceeds after taxes and estimated fees to be approximately $350 million. (NYSE: VICI), which currently includes Gold Strike, will be amended to reduce annual rent by $40 million. At the closing of the transaction, MGM Resorts' master lease agreement with VICI Properties Inc. Pre-pandemic, Gold Strike reported Adjusted Property EBITDAR of $67 million in 2019. 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."įor the twelve months ended December 31, 2021, Gold Strike reported net income of $81.1 million and Adjusted Property EBITDAR of $115 million 1, reflecting benefits from certain market specific factors in the last year. "Gold Strike is a wonderful property with a bright future ahead. “Cherokee Nation Entertainment has a rich history of operating hospitality destinations in Oklahoma, and we are proud to continue our growth in gaming and bring the level of excellence we are known for to the Tunica area,” Mark Fulton, president of Cherokee Nation Entertainment said in a statement."I want to thank all of our Gold Strike employees who have consistently delivered world-class gaming and entertainment experiences to our guests," said Bill Hornbuckle, CEO & President, MGM Resorts International. When it was built, the gold tower was reported to be the tallest building in Mississippi. We view the transaction as largely equity-value neutral.”Īt 32 stories tall, the iconic property is one of the most recognizable buildings in Tunica and towers above all other structures. “In its entirety, based on 2021 results, which were inflated, MGM is exiting the asset at a multiple of 6.7x 2021 EBITDAR, or 8.5x the average EBITDAR from 20. “Thus, when looked at in its entirety, in exchange for the $115 million of EBITDAR, MGM is receiving $450 million of gross cash proceeds ($350 million net cash proceeds) and debt (capitalized rent) relief of $320 million, or total gross proceeds of $770 million,” Santarelli said. “It also speaks volumes for regional gaming.” “It speaks volumes that as some of these larger companies look to divest assets, as we have seen with MGM with Mirage and now with Gold Strike, that tribal interests will be taking over the operations of these facilities,” said Brendan Bussmann, managing partner of B Global. In May, MGM took over the operations of The Cosmopolitan Las Vegas for $1.6 billion. “We appreciate VICI, as the real estate owner of Gold Strike, working constructively with CNE to facilitate a new lease agreement.”Įarlier this year, MGM announced the sale of the operations of the Mirage in Las Vegas to Hard Rock International owned by the Seminole Nation of Florida for $1.07 billion, closing by the end of 2022. “This is a great outcome for the company, as we can reprioritize future capital expenditures toward opportunities that will enhance the customer experience at our other locations,” said Jonathan Halkyard, CFO and Treasurer, MGM Resorts International. The company expects net cash proceeds after taxes and estimated fees to be approximately $350 million. The purchase price represents about an 11-times multiple on the average Adjusted Property EBITDA from 2019 to 2021. ![]() “Strategically, though, we decided to narrow our focus in Mississippi to a single resort, Beau Rivage (in Biloxi on the Gulf Coast), and dedicate more of our time and resources to continuing to drive success there.” “Gold Strike is a wonderful property with a bright future,” said MGM Resorts CEO Bill Hornbuckle. ![]() ![]() Tunica is about 20 miles south of Memphis. It has a 50,000-square-foot casino and more than 1,100 hotel rooms. The Gold Strike opened in 1994 and was acquired by MGM Resorts in 2005. “This acquisition will enable us to better serve our mission of growing the Cherokee Nation’s economy, while also having a significant positive impact on the local economies we serve.”Īt the closing of the transaction, expected by the first half of 2023, MGM Resorts’ master lease agreement with VICI Properties, which currently includes the Gold Strike, will be amended to reduce annual rent by $40 million. “We look forward to expanding our gaming and hospitality businesses as we execute on our strategic plan to grow our footprint outside of the Cherokee Nation Reservation,” Chuck Garrett, chief executive officer of Cherokee Nation Businesses, said in a statement.
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