MGM Mirage to sell Treasure Island for $500M cash

15.12.2008, Lesen Sie hier den Bericht über «MGM Mirage to sell Treasure Island for $500M cash».

Casino operator MGM Mirage said Monday it will sell the Treasure Island Hotel & Casino to billionaire Phil Ruffin for $500 million in cash.

Ruffin, whose interests include casinos and greyhound race tracks, purchased the property through Ruffin Acquisition LLC.

MGM Mirage has owned Treasure Island since May 2000 when MGM Grand Inc. purchased Mirage Resorts Inc.

The deal with Ruffin is valued at a total of $775 million, which also includes $275 million in secured notes. The notes, which will be senior to any other financing, will be issued by Ruffin Acquisition and secured by Treasure Island's assets.

MGM shares jumped $2.44, or 23 percent, to $13.13 in morning trading.

JPMorgan analyst Joseph Greff said that the sale was a good move for MGM, as the property is a noncore asset and helps to improve its liquidity position. He also views the transaction as a positive for Ruffin, partly due to the property's location and cash flows.

"We'd expect the deal to close easily and quickly given Ruffin (presumably) still has a Nevada gaming license," Greff wrote in a note to clients.

MGM said it anticipates a "substantial gain" on the sale.

Treasure Island, which resides on the Las Vegas Strip, includes 2,885 guest rooms and suites, 90,000 square feet of gaming space, restaurants and entertainment.

The acquisition is targeted to close by the end of the 2009 second quarter.

Über Treasure Island Hotel & Casino:

The Treasure Island Resort is a luxury hotel, located on the center of the Vegas Strip, next to The Mirage. This beautiful resort offers the highest standards of Las Vegas luxury combined with a fun, whimsical Pirate theme.

Treasure Island - TI Hotel Casino in Las Vegas Nevada USA is the perennial award winning resort on the Las Vegas Strip featuring a contemporary style with high-energy atmosphere. Privately owned by Phil Ruffin, this resort features some of the finest rooms and suites on the Las Vegas Strip available at a great value through the many deals, offers and promotion codes exclusive to Treasure Island - TI Las Vegas.

Relax by the outdoor tropical pool or the elegant spa and salon. Enjoy your choice of ten restaurants, eight bars and lounges, 95,000 sq. ft. of live casino gaming, and the salient Mystère by Cirque du Soleil. Modern meeting space and wedding chapels accommodate Las Vegas events of any kind. Connected by pedestrian bridges to Fashion Show shopping mall and Grand Canal Shoppes as well as a tram to The Mirage and short walking distance to Venetian/Palazzo, Sands Expo and Wynn/Encore.

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