MGM RESORTS INTERNATIONAL ANNOUNCES AGREEMENT TO SELL OPERATIONS OF MGM NORTHFIELD PARK FOR $546 MILLION

Executive Summary

• MGM Resorts International has agreed to sell the operations of MGM Northfield Park to private equity funds managed by Clairvest Group Inc. for $546 million in cash.
• The transaction represents an approximate 6.6x multiple on Adjusted EBITDA for the trailing twelve months ended June 30, 2025.
• MGM expects estimated net cash proceeds after taxes and transaction costs to be approximately $420 million, with the transaction expected to close in the first half of 2026.

Key Details

• Transaction Value: $546 million in cash, subject to customary purchase price adjustments.
• Buyer: Private equity funds managed by Clairvest Group Inc. (TSX: CVG).
• Asset Sold: Operations of MGM Northfield Park.
• Financial Metrics:
  • Purchase price represents an approximate 6.6x multiple on Adjusted EBITDA for the trailing twelve months ended June 30, 2025.
  • MGM Northfield Park reported Adjusted EBITDAR of approximately $137 million for the twelve months ended June 30, 2025.
  • Net cash proceeds (after taxes and transaction costs) estimated at approximately $420 million.
• Lease Adjustments: At closing, MGM Resorts' master lease agreement with VICI will be amended to reduce annual rent by $54 million.
• Closing Conditions: Expected to close in the first half of 2026, subject to regulatory approvals and other customary closing conditions.
• Advisors: Jefferies LLC and SMBC Nikko Securities America, Inc. served as advisors; Weil, Gotshal & Manges LLP served as legal counsel.
• Historical Context: MGM Growth Properties LLC acquired the property (then Hard Rock Rocksino Northfield Park) in July 2018. MGM Resorts acquired the operations from MGP in 2019 for $275 million plus adjustments and rebranded it as MGM Northfield Park.

Notable Quotes

• Bill Hornbuckle, CEO & President, MGM Resorts International: "I want to thank our MGM Northfield Park employees who have consistently delivered world-class gaming and entertainment experiences to our guests. This is a great property with great opportunity ahead... At MGM Resorts, our vision is to be the world's premiere gaming entertainment company. To achieve this vision, we're focused on growing our digital business, developing our international expansion opportunities, and continuing to invest in our leading integrated resorts domestically."
• Jonathan Halkyard, CFO & Treasurer, MGM Resorts International: "This is an excellent result for MGM Resorts and demonstrates consistency in driving transaction multiples at meaningful premiums over where MGM Resorts currently trades. The divestiture underscores MGM Resorts' exceptional financial stewardship, delivering substantial value well beyond the original acquisition price."