MGM Sells TI for $775MM

[darco77]

MGM Mirage selling Treasure Island casino on Vegas Strip to Phil Ruffin for $500 million

LAS VEGAS (AP) -- Casino operator MGM Mirage Inc. is selling the Treasure Island Hotel & Casino on the Las Vegas Strip to billionaire Phil Ruffin for $500 million, the company said Monday.

Ruffin, whose interests include casinos and greyhound race tracks, purchased the property through Ruffin Acquisition LLC for $500 million cash and $275 million in secured notes issued by Ruffin Acquisition and secured by Treasure Island's assets, MGM Mirage said. The combined value of the deal, including debt, is $775 million.

"This is a terrific deal for everyone involved," said Alan Feldman, spokesman for Las Vegas-based MGM Mirage. "We are able to complete a transaction at the right price with no financing involved through any other third party."

MGM Mirage has owned the Treasure Island since May 2000, when MGM Grand Inc. purchased Mirage Resorts Inc. The company said it anticipated a substantial gain on the sale.

Continued here: http://biz.yahoo.com/ap/081215/mgm_treasure_island.html (Archive copy)

 

[Brutus]

500 million seems kind of low.

see also
http://www.blackjackinfo.com/bb/showthread.php?t=12487

 

[darco77]

The headline is deceptive and should state $775MM. As stated in the second paragraph, the deal consists of 500MM in cash, plus 275MM in debt.

 

[glovesetc]

The headline is deceptive and should state $775MM. As stated in the second paragraph, the deal consists of 500MM in cash, plus 275MM in debt.

you are correct buddy . Paul Ruffin bought it as an investment . Hmmmmmm an investment in this market ? That is questionable to say the least .


:grin::laugh::eyepatch::cool2:

 

[bjhack]

you are correct buddy . Paul Ruffin bought it as an investment . Hmmmmmm an investment in this market ? That is questionable to say the least .


:grin::laugh::eyepatch::cool2:

I believe the Oracle of Omaha said something like "Be afraid when everyone else is being greedy and be greedy when everyone else is afraid."

Could this be something to do with it?

 

[shadroch]

500 million seems kind of low.

see also
http://www.blackjackinfo.com/bb/showthread.php?t=12487

How much would you pay for a building next to a freakin volcano? Isn't that how Wynn got it so cheap in the first place? Those low rent hookers that apparently live in the hovels in front of it don't help much , either.

 

[KenSmith]

Title changed from $500MM to $775MM

 

[darco77]

Thanks, Ken.

you are correct buddy . Paul Ruffin bought it as an investment . Hmmmmmm an investment in this market ? That is questionable to say the least .

Ruffin's got some money to play with. He bought the Frontier for 165MM in the late 90s and unloaded the dump in 2007 for 1.2 Billion. IMO, the Frontier sale is the marquee deal of the era: the Vegas Real Estate Bubble equivalent of Mark Cuban selling the now defunct broadcast.com for 6 Billion at the height of the dot com bubble. :cool2: