MGM Resorts International entered into a definitive agreement to acquire remaining 50% stake in CityCenter Holdings, LLC from Infinity World Development Corporation for $2.1 billion.
July 30, 2021
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MGM Resorts International (NYSE:MGM) entered into a definitive agreement to acquire remaining 50% stake in CityCenter Holdings, LLC from Infinity World Development Corporation for $2.1 billion on June 30, 2021. The agreement will make MGM Resorts the 100 percent owner of CityCenter on the Las Vegas Strip, which is comprised of Aria Resort & Casino and Vdara Hotel and Spa. MGM Resorts has also entered into a definitive agreement with Blackstone to monetize the Aria and Vdara real estate assets, pending the close of the equity purchase agreement between MGM Resorts and Infinity World. Under terms of that agreement, funds managed by Blackstone will acquire the Aria and Vdara real estate for $3.89 billion in cash. Following the acquisition, both properties will be leased to MGM Resorts for initial annual rent of $215 million. The agreement contemplates a reverse termination fee of $63.75 million payable by MGM Resorts to Infinity World in the event the agreement is terminated under certain circumstances.
The transaction is subject to certain closing conditions including gaming approvals and is expected to close at the end of third quarter of 2021. PJT Partners is serving as exclusive financial advisor and David F. Levy, Joe Pari, Michael J. Aiello, Nellie P. Camerik, Sachin Kohli, W. Michael Bond Jason Comer, Jannelle Marie Seales, Shira Barron, Karl de la Roche, Ting Liu, Elizabeth Shanaz Jaikaran, Nate Trunnell, Brian Senie of Weil, Gotshal & Manges LLP are serving as legal counsel to MGM Resorts. Moelis & Company LLC is serving as exclusive financial advisor and Rick S. Kirkbride of Paul Hastings LLP is serving as legal counsel to Infinity World. Citigroup Global Markets Inc., J.P. Morgan, Morgan Stanley & Co. LLC, and Wells Fargo served as financial advisors to Blackstone. Simpson Thacher & Bartlett LLP served as legal counsel to Blackstone on the acquisition of the Aria and Vdara real estate assets.
MGM Resorts International is one of the world's leading casino operators. At the end of 2021, the group operates 19 casino hotels in the United States (17; Bellagio, MGM Grand Las Vegas, Mandalay Bay, The Mirage, Luxor, Excalibur, New York-New York, Monte Carlo, Circus Circus Las Vegas, Aria, etc.) and in China (2; MGM Macau and MGM Cotai). Additionally, the group owns 50% of CityCenter and 50% of Greater Victoria. Net sales break down by activity as follows:
- casinos operation (55.4%): 29,382 slot machines and 1,936 gaming tables operated at the end of 2021;
- hotel operation (17.5%): operation of 45,157 hotel rooms (including 31,098 hotel rooms in the United States);
- catering (14.4%);
- operation of leisure sites and stores (10.4%);
- other (2.3%).
Net sales are distributed geographically as follows: the United States (87.5%) and China (12.5%).
MGM Resorts International entered into a definitive agreement to acquire remaining 50% stake in CityCenter Holdings, LLC from Infinity World Development Corporation for $2.1 billion.