MGM Resorts International has completed its takeover of the Borgata casino, the top-grossing gaming property in Atlantic City, US.
The operator, which already held a 50% stake, has finalised its $900 million (€809.0 million) acquisition of Boyd Gaming’s half of the Borgata, which is also the biggest brick-and-mortar casino in New Jersey’s online gaming sector.
According to a company statement, MGM Growth Properties acquired Borgata’s real property from MGM Resorts and leased it back to a subsidiary of MGM Resorts that will operate the property.
A report by the Associated Press news agency said Boyd received $589 million after deducting its share of the casino’s currently outstanding debt.
“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, chief executive 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.”
Related article: Boyd sells 50% stake in Borgata to MGM