MGM Resorts to sell Circus Circus Las Vegas for $825M, sees Q3 charge of $220M
MGM Resorts announced that it has entered into a definitive agreement to sell Circus Circus Las Vegas for $825M to an affiliate of Treasure Island owner Phil Ruffin. For the 12 months ending June 30, the property reported Adjusted Property EBITDA of $62M. "MGM Resorts has engaged in an exhaustive process to evaluate its owned real estate and remains committed to executing its asset-light strategy in a measured way that maximizes value for its shareholders," said Jim Murren, Chairman and CEO of MGM Resorts. "The company expects to utilize the proceeds from this transaction to enhance its capital allocation strategy and complement its strategic and operational flexibility." The $825M purchase price will comprise $662.5M paid in cash and a $162.5M note due 2024. The transaction is expected to close in the fourth quarter, subject to customary closing conditions, including receipt of necessary regulatory approvals. The company expects to record a third quarter impairment charge of approximately $220M in connection with this transaction.