MGM Resorts International to Buy Stake in CityCenter

By Dave Sebastian

MGM Resorts International said it has agreed to buy Infinity World Development Corp.'s 50% interest in CityCenter Holdings LLC for $2.13 billion.

The purchase price reflects a valuation of $5.8 billion based on net debt of $1.5 billion, the company said Thursday. The deal will make MGM Resorts the 100% owner of CityCenter on the Las Vegas Strip, which comprises Aria Resort & Casino and Vdara Hotel and Spa.

MGM Resorts also said it entered into an agreement with Blackstone to monetize the Aria and Vdara real-estate assets. Funds managed by Blackstone will acquire the Aria and Vdara real estate for $3.89 billion in cash, representing 18.1 times rent, MGM Resorts said. After the acquisition, both properties will be leased to MGM Resorts for initial annual rent of $215 million, the company said.

"Uniting all of CityCenter under MGM Resorts' corporate structure and strategy will allow us to consolidate financial results" and "build on efforts to strengthen our operating model," MGM Resorts President and Chief Executive Bill Hornbuckle said.

MGM Resorts expects the transactions to close in the third quarter.

Write to Dave Sebastian at [e-mail]

(END) Dow Jones Newswires

July 01, 2021 09:31 ET (13:31 GMT)

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