US casino operator Boyd Gaming Corporation has entered into an agreement to sell its 50 per cent holding in New Jersey’s Borgata Hotel Casino & Spa to MGM Resorts International in a $900m deal.
Boyd will sell its stake in Marina District Development Holding Company, the Borgata’s parent company, for $600m in net cash proceeds, after deducting its share of the venue’s outstanding debt. It has also agreed to give up a 50 per cent share of any future property tax settlement benefits received by the casino.
The initial $600m proceeds do not include the share of any property tax settlements. The Borgata estimates that it is entitled to property tax refunds of $180m, including amounts due under court rulings in its favour and estimates for open tax appeals.