MGM Resorts complete Borgata casino takeover

MGM Resorts has taken over the Borgata after acquiring Boyd’s 50 percent stake. The $900m (€809.0m) deal will see Boyd Gaming receive $589m (€529m) after debt deduction.

[dropcap]M[/dropcap]GM Resorts International has finalised its takeover of the Borgata casino, the highest grossing gaming venue in Atlantic City, US.

Already holding a 50 percent stake, the operator acquired Boyd Gaming’s half of the Borgata, including the New Jersey casino’s online gaming portfolio, for $900m (€809.0m).

According to a company statement, MGM Growth Properties acquired Borgata’s brick-and-mortar property from MGM Resorts and leased it back to a subsidiary of MGM Resorts which will operate the property.

After deducting its share of the casino’s currently outstanding debt, Boyd received $589m (€529m).

Our ability to enhance our portfolio with a premier asset like Borgata in such early stages of our company demonstrates our focus on prudent growth and the financial flexibility of our balance sheet.

James Stewart, chief executive of MGM Growth Properties, said: “Our ability to enhance our portfolio with a premier asset like Borgata in such early stages of our company demonstrates our focus on prudent growth and the financial flexibility of our balance sheet. This transaction brings geographic diversification and increased cash flows to our portfolio while maintaining neutral leverage and resulting in high single-digit percentage accretion to AFFO per share.”