MGM to Buy Remaining Borgata Shares
MGM Resorts is buying the rest of Boyd Gaming’s 50 per cent interest in Borgata Hotel Casino & Spa in Atlantic City, New Jersey for a consideration of $900m
MGM Resorts is to acquire Atlantic City’s Borgata from Boyd Gaming and lease back the property to subsidiary
NEW JERSEY CASINO OPERATIONS
MGM Resorts will pay $600m for Boyd Gaming’s 50 per cent interest, subject to customary working capital adjustments, after consideration of Borgata’s outstanding debt of approximately $600m, which MGM Resorts will assume and refinance. For the last 12 months ended March 31, 2016, Borgata reported $812m in net revenues and $212m in Adjusted EBITDA.
“Borgata is the premier resort in Atlantic City and a great addition to our growing presence in the Northeast,” said Jim Murren, Chairman and CEO of MGM Resorts. “While the market continues to experience challenges, Borgata has outperformed and differentiated itself as the undisputed leader in the city. Our decade-long partnership with Boyd Gaming has been a great one, and Borgata’s talented employee base will complement and strengthen our more than 60,000-member worldwide MGM Resorts team. We are excited about the opportunity to bring our loyalty program, M life Rewards, to the resort and integrate our operations, to position Borgata for further growth.”
US
Lottery, gaming and interactive giant International Game Technology saw its bottom line rise to $115.66m in its first quarter up from $74.24m in last year’s first quarter.
Revenue for the quarter increased 2.4 per cent to $1.28bn, up from $1.25bn last year. Marco Sala, CEO of IGT said: “We begin 2016 with a solid first quarter, evidenced by good revenue growth with all operating segments contributing to an improvement in profitability. Continuing growth across all regions, especially North America andItaly, propelled our lottery revenues. Gaming revenues were resilient despite challenging market conditions in North America, our largest gaming market. We remain focused on reenergising gaming operations and strengthening our global leadership in lotteries. We were successful in securing the Italian Lotto concession, one of our largest contracts and a cornerstone of our Italian operations.”
Washoe Tribe opens Wa She Shu Casino in Nevada
Nevada
Te Washoe Tribe has opened its first gaming facility, the Wa She Shu Casino, on Highway 395 just north of Garnerville.
Te casino, whose name means “Te People’s Place”, is the result of a unique tribe-to- tribe business relationship between the Washoe Tribe of Nevada and California, and the Poarch Band of Creek Indians of Atmore, Alabama.
“Opening a casino and partnering with the Poarch
Subsequent to the purchase of Boyd Gaming’s 50 per cent stake in Borgata, MGM Resorts and MGP have agreed that MGM Resorts will sell all of Borgata’s real property to MGP for total consideration of approximately $1.175bn.
“We are excited to add Borgata to the MGP portfolio, further diversifying our geographic presence. With this transaction, we are executing on our core growth strategy in prudently building a portfolio of high-quality assets,” said James Stewart, CEO of MGM Growth Properties. “We expect the transaction to result in high single digit percentage accretion to AFFO per share, and pro forma net leverage will remain similar to our current levels.”
Borgata will be added to the existing Master Lease between MGM Resorts and MGM Growth Properties Resorts, and the initial rent payment to MGP will increase by $100m. Consistent with the Master Lease terms, 90 percent of this rent will be fixed and contractually grow at two per cent per year until 2022.
Band of Creek Indians is another step toward the Washoe Tribe’s long term goal of economic self-sufficiency,” remarked Washoe Tribal Chair, Neil Mortimer.
“We are excited about the partnership and pleased to create job opportunities for our Tribal members, as well as local residents. Te partnership between our Tribe and the Poarch Band of Creek Indians of Alabama is the first of its kind. Te Washoe Tribe is excited to partner with the Poarch Band of Creek Indians and we are looking forward to increasing the gaming and dining experience in the Carson Valley for both residents and visitors.”
Te 13,500 square foot facility boasts a 4,600 square foot gaming floor featuring 130 state-of-the-art games. Visitors will also be able to enjoy a restaurant that comfortably seats 80 guests as well as a bar. An additional 4,000 square feet is designated for future expansion of the gaming floor.
NORTH AMERICA
US – Gaming Laboratories International has bought Bulletproof Solutions, Atlantic Canada’s Trusted IT Services Company with a strong and growing portfolio of successful contract and project services. The investment further underscores the GLI Group’s commitment to Canada, and in particular, New Brunswick and the Atlantic Provinces.
The GLI Group announced that, as part of the acquisition, the entire leadership team and executives at Bulletproof, including the senior management team led by Steven Burns, Jeff Shaw and Andrew Jefferies, will continue to operate the company just as they have since inception. Both companies plan to leverage Bulletproof’s strong IT services capabilities throughout other provinces in Canada and in the United States.
US – Kobetron has bought assets of Gaming Informatics (GI), which includes the IRIS software suite. The Gaming Informatics software suite allows casinos and regulators to track the inventory of electronic gaming equipment throughout the casino property, whether on the floor or offline.
This transaction combines Kobetron, the leading specialized gaming verification tools company, with GI, the leading enterprise-resource planning software company. As part of the transaction, it was announced that Grant Stousland, President and CEO of Gaming Informatics, will remain in a strategic leadership and business development role with Kobetron overseeing the ongoing sales, support and product development of the GI line of products.
CANADA – Suzo Happ’s Canadian facility has obtained the ISO 9001:2015 accreditation. The ISO 9001 certification is an important step in Suzo Happ’s commitment to excellence and is further evidence that Suzo Happ provides quality, high- performing products able to meet the demands of the markets. Specifically in the Canadian facility Suzo Happ manufactures the Bill-toBill currency management systems and the MFL bill validator.
Both product lines have become industry standards in terms of reliability, performance and customer satisfaction. To become ISO 9001 certified, a company must fulfill requirements outlined by the ISO – International Standardization Organisation – and must demonstrate a quality management system with the ability to consistently provide quality products enhancing customer satisfaction.
“We are very proud of this outstanding result. The ISO 9001 certification reflects Suzo Happ’s commitment to highest standards in quality and customer service” comments SuzoHapp’s Steve Pallotta, Corporate EVP of Operations at Suzo Happ.
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