MGM Resorts Worldwide declares settlement to promote Gold Strike Tunica operations for $450 million

The acquisition worth represents a a number of of roughly 11 instances on common adjusted property EBITDA from 2019-2021

LAS VEGAS, June 9, 2022 /PRNewsWire/ — MGM Resorts Worldwide (NYSE: MGM) (“MGM Resorts” or the “Firm”) at the moment introduced that it’ll promote the operations of Gold Strike Tunica (“Gold”) An settlement has been reached. Strike”) to Cherokee Nation Leisure Gaming Holdings, LLC (“CNE”), a subsidiary of Cherokee Nation Enterprise, for $450 million in money, topic to customary changes.

“I want to thank all of our Gold Strike staff who’ve persistently supplied our company with world-class gaming and leisure experiences,” mentioned Invoice Hornbuckle, CEO and President, MGM Resorts Worldwide. “Gold Strike is an incredible property with a vivid future. Strategically, nonetheless, we determined to restrict our focus to a single resort in Mississippi – Beau Rivage – and spend extra of our time persevering with to construct on that pioneering success.” and devoted assets, world-class resorts and casinos.”

For the twelve months ended December 31, 2021, Gold Strike reported internet earnings of $81.1 million and adjusted asset EBITDAR of $115 million, reflecting positive aspects from sure market particular elements within the prior yr. Pre-pandemic, Gold Strike reported an adjusted asset EBITDAR of $67 million in 2019. On the conclusion of the transaction, MGM Resorts’ grasp lease settlement with VICI Properties Inc. (NYSE:VICI), which at the moment consists of Gold Strike, shall be amended. Lower annual lease by $40 million. The corporate expects internet money earnings after taxes and estimated charges to be roughly $350 million.

“It is a nice consequence for the corporate as we’re in a position to re-prioritize future capital expenditures towards alternatives that can improve the client expertise at our different areas,” mentioned Jonathan Hulkyard, CFO and Treasurer of MGM Resorts Worldwide. “We commend VICI as the actual property proprietor of Gold Strike, which is working constructively with CNE to facilitate a brand new lease settlement.”

Gold Strike opened in 1994 and was acquired by MGM Resorts in 2005. At 32 tales tall, the long-lasting property is without doubt one of the most recognizable buildings in Tunica and towers above all different buildings. The Gold Tower was mentioned to be the tallest constructing in Mississippi when it was constructed.

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The transaction is predicted to shut within the first half of 2023, topic to regulatory approval and different customary closing circumstances.

Weil, Gotshal & Manges LLP served as authorized advisor at MGM Resorts.

About MGM Resorts Worldwide

MGM Resorts Worldwide (NYSE: MGM) is an S&P 500® world leisure firm with nationwide and worldwide areas, together with best-in-class resorts and casinos, state-of-the-art assembly and convention areas, unimaginable stay and theatrical leisure experiences. and a variety of restaurant, nightlife and retail choices. MGM Resorts creates immersive, iconic experiences by way of its suite of Las Vegas-inspired manufacturers. The MGM Resorts portfolio consists of 33 distinctive lodge and gaming locations globally, together with among the most acknowledged resort manufacturers within the trade. The corporate’s 50/50 enterprise, BetMGM, LLC, presents US sports activities betting and on-line gaming by way of market-leading manufacturers together with BetMGM and PartyPoker. The corporate is at the moment pursuing focused enlargement into Asia by way of an built-in resort alternative in Japan. By his “Targeted on What Issues: Embracing Humanity and Defending the Planet” philosophy, MGM Resorts is dedicated to making a extra sustainable future by striving to make a distinction within the lives of its staff, company and the communities through which it operates. MGM Resorts’ world staff are so happy with their firm that they’ve been acknowledged by FORTUNE® Journal as one of many World’s Most Admired Firms®. For extra info, please contact us www.mgmresorts.com, Please additionally join with us @MGMResortsIntl Twitter With all Fb And instagram,

about Cherokee Nation Occupation:

Cherokee Nation Enterprise is the biggest tribal-owned holding firm of the Indian nation in the US. The Cherokee Nation and its companies make use of 11,000 individuals. CNB blends its heritage of ingenuity with fashionable enterprise expertise to unravel complicated challenges, serve prospects nationwide, and stay one of many drivers of the Cherokee Nation’s prosperity and sustainability. CNB owns firms within the consulting, healthcare, hospitality, actual property, know-how, distribution and logistics, engineering, manufacturing, building and environmental providers industries. For extra info, please go to www.CherokeeNationBusinesses.com or comply with CNB on Fb, Twitter and LinkedIn.

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About Cherokee Nation Leisure:

Cherokee Nation Leisure is a gaming and hospitality firm of the Cherokee Nation. The corporate owns and operates the Exhausting Rock Resort and On line casino Tulsa and 9 Cherokee casinos, which embrace a horse racing monitor, three resort resorts, three golf programs, and different retail operations. For extra info go to www.hardrockcasinotulsa.com and www.cherokeecasino.com.

forward-looking statements:

Statements on this launch that aren’t historic info are forward-looking statements throughout the which means of the amended Personal Securities Litigation Reform Act of 1995, and contain dangers and/or uncertainties, together with these described within the Firm’s public filings with Securities and Trade Board of India. Particulars are included. and Trade Fee. Ahead-looking statements use forward-looking terminology reminiscent of “imagine,” “anticipate,” “would possibly,” “could possibly be,” “would,” “ought to,” “needs,” “seemingly,” Could also be recognized by intention,” “plans,” “professional forma,” “initiatives,” “estimates” or “estimated” or the damaging of those phrases and phrases or comparable phrases or phrases that predict or point out future occasions or tendencies Do’s and Don’ts relate solely to historic issues. The corporate has based mostly forward-looking statements based mostly on administration’s present expectations and assumptions and never historic info. Examples of those statements embrace, however usually are not restricted to the corporate’s expectations in relation to the conclusion of the sale and any earnings from the sale, together with the corporate’s anticipated internet money earnings. Ahead-looking statements depend on assumptions, information or strategies which may be false or inaccurate, and the Firm might not be capable to notice them. The Firm doesn’t warrant that the transaction or different occasions described herein (or they are going to be in any respect). These forward-looking statements contain a variety of dangers and uncertainties. Necessary elements that might trigger precise outcomes to vary materially from these indicated in such forward-looking statements embrace dangers associated to the flexibility of the Firm to finish the transaction on the phrases described herein, Satisfaction of closing circumstances together with receipt. Regulatory approvals to which the completion of the transaction is topic, which can delay or stop the completion of the transaction, the persevering with affect of the COVID-19 pandemic on the Firm’s enterprise, financial circumstances within the markets and the affect of market circumstances Wherein the corporate operates and competes with different vacation spot journey areas in the US and all over the world, the design, timing and value of enlargement initiatives, dangers associated to worldwide operations, permits, licenses, funding, approvals and different contingencies in relation to improvement An outline of extra dangers and uncertainties within the new or current jurisdiction and within the Firm’s Kind 10-Ok, Kind 10-Q and Kind 8-Ok reviews (together with all amendments to these reviews). In offering forward-looking statements, the Firm undertakes no obligation or obligation to publicly replace these statements on account of new info, future occasions or in any other case, besides as required by regulation. If the Firm updates a number of forward-looking statements, no conclusion must be drawn that it’ll make extra updates with respect to these different forward-looking statements.

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Non-GAAP Monetary Measures

This press launch consists of adjusted asset EBITDAR for Gold Strike Tunica, a “non-GAAP monetary measure” as outlined in Regulation G beneath the amended Securities Trade Act of 1934. Schedules reconciling the non-GAAP monetary measure for 2019 to probably the most straight comparable monetary measure calculated and introduced in accordance with usually accepted accounting ideas in the US can be found within the firm’s earnings launch, dated February 12, 2020, which was submitted to the SEC and is offered on our web site www.mgmresorts.com. As well as, this press launch consists of multiples based mostly on common adjusted asset EBITDA. Adjusted asset EBITDA Adjusted asset EBITDAR is $40 million much less lease. See footnote 1 on this press launch for the reconciliation of 2021 adjusted asset EBITDAR to internet earnings.

MGM Resorts Contact

Funding Neighborhood:

Andrew Chapman, Director of Investor Relations

(702) 693-8711, [email protected]

Information media:

Brian Ahern, Govt Director of Communications

[email protected]

1 Calculated as internet earnings of $81.1 million, $0.4 million adjusted for curiosity and different non-operating bills, $8.0 million of depreciation and amortization, $0.1 million of lease bills related to property transactions, internet, and triple-net working leases 25.4 million.

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