News for the Hospitality Executive
Former Frontier Owner Phil Ruffin Enters Agreement to
Acquire Treasure Island Hotel
& Casino for $775 million from MGM MIRAGE
VEGAS, Dec. 15, 2008 - MGM MIRAGE (NYSE: MGM) and Ruffin Acquisition, LLC
today announced that they have entered into an agreement whereby MGM MIRAGE,
through its wholly-owned subsidiary The Mirage Casino-Hotel, will sell
Treasure Island Hotel & Casino ("TI") to Ruffin Acquisition, LLC for
$775 million. Ruffin Acquisition, LLC is wholly owned by Phil Ruffin.
The purchase price is to be paid at closing as follows: $500 million in cash and $275 million in secured notes bearing interest at 10%, with $100 million payable not later than 175 days after closing and $175 million payable not later than 24 months after closing. The notes, to be issued by Ruffin Acquisition, LLC, will be secured by the assets of TI and will be senior to any other financing.
The transaction is subject to customary closing conditions contained in the purchase agreement, including receipt of necessary regulatory and governmental approvals. The parties expect the transaction to close by the end of the second quarter of 2009. MGM MIRAGE expects to report a substantial gain on the sale.
MGM MIRAGE acquired TI as part of the merger between MGM Grand, Inc.
and Mirage Resorts, Incorporated in May 2000.
TI is located on the Las Vegas Strip and features 2,885 guest rooms and suites, approximately 90,000 square feet of gaming space, several fine and casual dining outlets, The Sirens of TI -- the iconic pirate battle attraction, and Mystere, the first permanent production in Las Vegas by Cirque du Soleil.
"We are very excited to be in a position to acquire such a stellar property in Treasure Island," said Mr. Ruffin. "The property is in pristine condition, ideally located in the heart of the Strip and benefits from a wonderful team of outstanding employees. We are financially positioned to close on this transaction once all of the necessary approvals have been received," Mr. Ruffin noted.
MGM MIRAGE (NYSE: MGM), one of the world's leading and
most respected development companies with significant holdings in gaming,
hospitality and entertainment, owns and operates 17 properties located
in Nevada, Mississippi and Michigan, and has 50% investments in four other
properties in Nevada, New Jersey, Illinois and Macau. MGM MIRAGE is developing
major casino and non-casino resorts, separately and with partners in Las
Vegas, Atlantic City, the People's Republic of China and Abu Dhabi, U.A.E.
MGM MIRAGE supports responsible gaming and has implemented the American
Gaming Association's Code of Conduct for Responsible Gaming at its properties.
MGM MIRAGE has received numerous awards and recognitions for its industry-leading
Diversity Initiative and its community philanthropy programs. For more
information about MGM MIRAGE, please visit the company's website at http://www.mgmmirage.com.
|Also See:||The 984 room New Frontier and its 36 Strip Acres Bought for More then $1.2 billion; Phil Ruffin Paid $167 million for the New Frontier in 1998, Howard Hughes bought the Frontier for $14 million in 1967 / May 2007|