MGM RESORTS INTERNATIONAL ANNOUNCES AGREEMENT TO SELL OPERATIONS OF MGM NORTHFIELD PARK FOR $546 MILLION

Core Viewpoint - MGM Resorts International has agreed to sell MGM Northfield Park to Clairvest Group for $546 million in cash, reflecting a 6.6x multiple on Adjusted EBITDA for the trailing twelve months ended June 30, 2025 [1][2]. Financial Summary - MGM Northfield Park reported Adjusted EBITDAR of approximately $137 million for the twelve months ended June 30, 2025 [2]. - The transaction is expected to yield estimated net cash proceeds of approximately $420 million after taxes and transaction costs [2]. - The sale will lead to a reduction in MGM Resorts' annual rent by $54 million under its master lease agreement with VICI [2]. Transaction Details - The transaction is anticipated to close in the first half of 2026, pending regulatory approvals and customary closing conditions [2]. - MGM Resorts previously acquired the operations of MGM Northfield Park for $275 million in 2019 [2]. Strategic Focus - The CEO of MGM Resorts emphasized the company's vision to be the world's premier gaming entertainment company, focusing on digital business growth and international expansion [2]. - The divestiture is seen as a demonstration of MGM Resorts' financial stewardship and ability to drive transaction multiples at meaningful premiums [2]. Advisory and Legal Counsel - Jefferies LLC and SMBC Nikko Securities America, Inc. acted as financial advisors, while Weil, Gotshal & Manges LLP served as legal counsel for MGM Resorts [3]. Company Overview - MGM Resorts International is a global gaming and entertainment company with a portfolio of 31 hotel and gaming destinations [4]. - The company is also involved in sports betting and online gaming through its joint venture, BetMGM, and is pursuing expansion opportunities in Asia [4].