MGM Now Owns All Of The Borgata In Atlantic CityTransaction Completed This Week, MGM Says |
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MGM is now the sole owner of the Borgata casino in Atlantic City, after its transaction to acquire Boyd Gaming’s 50-percent stake was completed Monday, according to a company press release.
MGM Growth Properties acquired Borgata’s real property from MGM Resorts and leased it back to a subsidiary of MGM Resorts that will operate that property.
Buying out Boyd cost $900 million. According to the Associated Press, Boyd received $589 million, after deducting its share of the casino’s currently outstanding debt.
Borgata is Atlantic City’s top grossing casino.
“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,” said James Stewart, CEO of MGM Growth Properties. “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.”
According to the AP, the deal for the casino and the Water Club hotel doesn’t include Boyd’s share of $160 million in property tax refunds the casino is owed from Atlantic City.
In addition to being the top brick-and-mortar casino, Borgata has the largest online gambling business in the state. It had $45.7 million in online gaming revenue in 2015, nearly a third of the state’s total. The licensed online gaming sites under Borgata are Borgatacasino.com, Borgatapoker.com, NJ.Partypoker.com, palacasino.com and palabingousa.com.
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