MGM buying 1/2 interest in Borgata from Boyd Gaming

[sondor]

Just hit CNBC, MGM is buying Boyd's interest in Borgata for 900 Million.....may mean that it links up fully with the Mlife program

LAS VEGAS, May 31, 2016 /PRNewswire/ -- Boyd Gaming Corporation ("Boyd Gaming") (BYD) today announced that it has entered into a definitive agreement to sell its 50% equity interest in Marina District Development Holding Company, LLC, the parent company of Borgata Hotel Casino & Spa in Atlantic City, New Jersey, to MGM Resorts International (MGM)for consideration of $900 million, as well as a 50% share of any future property tax settlement benefits received by Borgata.

Boyd Gaming expects to initially receive approximately $600 million in net cash proceeds from the transaction, after deducting its share of Borgata's currently outstanding debt. These initial proceeds do not include Boyd Gaming's potential share of future property tax settlement benefits. Borgata estimates that it is entitled to property tax refunds totaling $180 million, including amounts due under court decisions rendered in its favor, and estimates for open tax appeals.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "The development and opening of Borgata in 2003 was an important step in the evolution and growth of Boyd Gaming. Under our leadership, Borgata firmly established itself as the East Coast's most popular and successful entertainment resort throughout the last 13 years. While we are pleased with the performance of this property, this transaction is an attractive opportunity to immediately unlock significant value for our shareholders. We intend to use the proceeds to reduce debt, further strengthening our balance sheet and accelerating the timeline for reaching our leverage target of four to five times debt to Adjusted EBITDA."

[CPT]

I hope they keep the current players club, if it's anything like Vegas mLife, I'll say goodbye to my comp'd rooms I'm sure! Or at least I'm grandfathered in or something. Red Label Kenny has feelings too.

[zeus]

With MGM National Harbor opening this year I would think that they would convert Borgata's players club to MLife. It would be easier than trying to run and support two different players club. Maybe this will result in them offering junkets for their members to AC!

But with all of that said, I know that the Borgata folks really enjoy the rewards they get now, so if it does change I hope that it not in a bad way for everyone.

[MNvegasgal]

I hope they keep the current players club, if it's anything like Vegas mLife, I'll say goodbye to my comp'd rooms I'm sure! Or at least I'm grandfathered in or something. Red Label Kenny has feelings too.

Kenny.. Maybe this will get you some great offers from Las Vegas MLIFE casinos.. They want you in there playing big Kenny style!


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[zeus]

http://vegasinc.com/business/gaming/...826.1464728246

According to this article on VegasInc, Jim Murren states that they will be bringing on the MLife program to Borgata.

[CTslotters]

Thanks for sharing this guys, given how terribly we've done at mlife, this does not make me happy. Hoping it doesn't impact our borgata comps. Guess time will tell.

[CPT]

http://vegasinc.com/business/gaming/...826.1464728246

According to this article on VegasInc, Jim Murren states that they will be bringing on the MLife program to Borgata.

Well Jim Murren is a punk! HHH I do hope if anything it results in better mLife offers in Vegas. We shall see in indeed!

[Cyndyga]

Wonder if they'll do away with maiching cards and also get rid of Amphora Lounge?

[dvandentop]

awesome! would be nice to get a junket to there

[emmas]

Hope things don't change too quickly or drastically. It will be nice to get some mlife benefits for playing at the Borgata, but I hope comps, etc., don't get as tight as mlife in Vegas. Although, its been kicking my butt for the last few years, I generally enjoy slotting at the Borgata and not having to be a huge player to get some benefits.