MGM Mirage (MGM) will sell its Treasure Island Hotel & Casino on the
Las Vegas Strip to Ruffin Acquisition LLC for $775 million as it looks
to increase its liquidity.
Ruffin Acquisition, wholly owned by Phil Ruffin, will pay $500 million
in cash and issue $275 million in secured notes with a 10% yield, that
are payable within two years of closing. That is slated to take place
by mid-year and MGM Mirage expects to report a large gain on the sale.
MGM Mirage (MGM) will sell its Treasure Island Hotel & Casino on
the
Las Vegas Strip to Ruffin Acquisition LLC for $775 million as it
looks
to increase its liquidity.
Ruffin Acquisition, wholly owned by Phil Ruffin, will pay $500
million
in cash and issue $275 million in secured notes with a 10% yield,
that
are payable within two years of closing. That is slated to take
place
by mid-year and MGM Mirage expects to report a large gain on the
sale.
My Executive Host at TI knew the property was on the chopping block a
long time ago. But what was unknown was whether the property would be
sold or retained by MGM-Mirage and then imploded and rebuilt.
I assume the monorail to the Mirage will be dismantled. As with the
one that used to conveniently run from Monte Carlo to Bellagio it
will probably become yet another Vegas memory of time marching on.
--- In vpFREE@yahoogroups.com, "vetsen" <vetsen@...> wrote:
TI just finished about 2 years worth of upgrades to the rooms and casino, so the implosion option must have been dismissed at least 2 or 3 years ago.
Ruffin basically got a like-new property during distressed times. Solid acquisition principles. What he does with it is yet to be seen. If the former Frontier is any indication, it's not good.
JD
mikeymic wrote:
----- Original Message ----
My Executive Host at TI knew the property was on the chopping block a
long time ago. But what was unknown was whether the property would be
sold or retained by MGM-Mirage and then imploded and rebuilt.