Boyd Gaming completed the sale of its half of Atlantic City’s Borgata casino on Monday to MGM Motels Worldwide. Nevada-primarily based Boyd stated it obtained $589 million from the transaction, after deducting its share of Borgata’s presently exquisite debt. It’ll use the proceeds to pay down debt and for “preferred company purposes.”
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That amount does not consist of Boyd Gaming’s 50 percent percentage of any destiny property tax agreement advantages. The Borgata, Atlantic Metropolis’s pinnacle on line casino, estimates its far due assets tax refunds totaling $one hundred sixty million, which include quantities due beneath court docket decisions rendered in its choose and estimates for open tax appeals.
The transaction includes the Borgata on line casino and in, and its non-gaming Water Club hotel tower round the corner inside the City’s Marina District.
“Because the most appropriate lodge in Atlantic City, Borgata is a great addition to our growing presence inside the mid-Atlantic and Northeast U.S.,” stated Jim Murren, chairman & CEO of MGM Accommodations. “We are excited to welcome the gifted Borgata leadership group and personnel into MGM Hotels and stay up for serving visitors with new and exciting possibilities.”
Borgata clients could have their Borgata rewards bills automatically changed over to MGM’s rewards program in 2017; the exact switchover date has now not yet been determined, MGM stated.
MGM now owns all of the Borgata, which has dominated the Atlantic Town marketplace when you consider that rapidly after it opened in 2003. The sale worried Boyd giving up its 50 percentage ownership of Marina District Development Keeping Co. LLC, Borgata’s parent corporation.
The Las Vegas corporations Boyd and MGM have been companions in the Borgata, which suggested first-area net sales of $812 million and $212 million in adjusted earnings. Boyd had been the palms-on operator.
MGM decided in 2010 to promote its stake and leave New Jersey in preference to reduce ties to an Asian business partner in Macau, however a client turned into by no means located. In 2014, declaring that situations with its Macau business partnership had sufficiently changed, New Jersey on line casino regulators allowed MGM back into the Atlantic Town marketplace to reclaim its 50 percentage share, which had been held in a agree with whilst a purchaser became sought.
Following the purchase of Boyd’s interest, MGM Growth Residences LLC will collect the Borgata’s real assets from MGM Resorts and hire lower back the actual belongings to a subsidiary of MGM Accommodations. A subsidiary of MGM Motels will then perform the Borgata.