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

Rhea-AI Summary

MGM Resorts (NYSE: MGM) agreed to sell operations of MGM Northfield Park to private equity funds managed by Clairvest for $546 million in cash, subject to customary adjustments, with closing expected in H1 2026 pending regulatory approvals.

The price implies an approximate 6.6x multiple on LTM Adjusted EBITDA and follows LTM Adjusted EBITDAR of $137 million through June 30, 2025. MGM expects ~$420 million net cash proceeds after taxes and transaction costs and a $54 million annual rent reduction under its VICI master lease at closing.

Positive

• Sale price of $546 million
• Implied multiple of 6.6x LTM Adjusted EBITDA
• Estimated net cash proceeds of ~$420 million
• Annual rent reduction of $54 million under VICI master lease
• Original operations acquired in 2019 for $275 million

Negative

• Transaction subject to regulatory approvals and customary closing conditions delaying closing into H1 2026

Insights

Transaction Analyst

Sale of MGM Northfield Park operations for $546 million delivers meaningful cash, reduces rent, and crystallizes a >6x EBITDA multiple.

As a transaction, the deal converts operating cash flows into $546 million of consideration, with estimated net cash proceeds after taxes and transaction costs of about $420 million. The buyer is private equity funds managed by Clairvest, and the purchase price represents roughly a 6.6x multiple on trailing twelve‑month Adjusted EBITDA through June 30, 2025. At closing, the master lease with VICI will be amended to reduce annual cash rent by $54 million, which changes ongoing cash obligations tied to the property.

The outcome depends on regulatory approvals and customary closing conditions, with an expected close in the first half of 2026. Key risks are limited to those stated: failure to obtain approvals or satisfy closing conditions and any purchase price adjustments. Concrete items to watch are the receipt of regulatory approvals, the final purchase price adjustments at closing, and confirmation of the estimated $420 million net proceeds and the amended lease terms (initial rent now stated as $53 million rising to $54 million on a May 1, 2026 escalator).

Purchase price represents an approximate 6.6x multiple on Adjusted EBITDA for the  trailing twelve months ended June 30, 2025

LAS VEGAS, Oct. 16, 2025 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") announced today that it has reached an agreement to sell the operations of MGM Northfield Park to private equity funds managed by Clairvest Group Inc. (TSX: CVG) ("Clairvest") for $546 million in cash, subject to customary purchase price adjustments.

"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," said Bill Hornbuckle, CEO & President, MGM Resorts International. "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."

For the twelve months ended June 30, 2025, MGM Northfield Park reported Adjusted EBITDAR of approximately $137 million¹.  At the closing of the transaction, MGM Resorts' master lease agreement with VICI, which currently includes MGM Northfield Park, will be amended to reduce annual rent by $54 million². The Company expects estimated net cash proceeds after taxes and transaction costs to be approximately $420 million. 

"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," said Jonathan Halkyard, CFO & Treasurer, MGM Resorts International. "We appreciate VICI, as the real estate owner of MGM Northfield Park, working constructively with Clairvest to facilitate a new lease agreement." 

MGM Growth Properties LLC ("MGP") acquired the Hard Rock Rocksino Northfield Park in July 2018. In 2019, MGM Resorts acquired the operations from MGP for $275 million plus purchase price adjustments and rebranded the property as MGM Northfield Park. 

The transaction is expected to close in the first half of 2026, subject to the receipt of regulatory approvals and other customary closing conditions.

Jefferies LLC and SMBC Nikko Securities America, Inc. served as advisors and Weil, Gotshal & Manges LLP served as legal counsel to MGM Resorts.

About MGM Resorts International
MGM Resorts International (NYSE: MGM) is an S&P 500® global gaming and entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 31 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The Company's 50/50 venture, BetMGM, LLC, offers sports betting and online gaming in North America through market-leading brands, including BetMGM and partypoker, and the Company's subsidiary, LV Lion Holding Limited, offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe and Brazil. The Company is currently pursuing targeted expansion in Asia through an integrated resort development in Japan. Through its Focused on What Matters philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information, please visit us at www.mgmresorts.com. Please also connect with us @MGMResortsIntl on X as well as Facebook and Instagram.

Forward Looking Statements
Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "could," "may," "will," "should," "seeks," "likely," "intends," "plans," "pro forma," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company's expectations regarding the closing of the sale and any benefits expected to be received from the sale, including the Company's expected net cash proceeds. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise, and the Company may not be able to realize them. The Company does not guarantee that the transaction or other events described herein will happen as described (or that they will happen at all). These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include risks related to the Company's ability to complete the transaction on the terms described herein or all, the satisfaction of the closing conditions to which the completion of the transaction is subject, including, but not limited to, the receipt of regulatory approvals, which could delay or prevent the completion of the transaction, the effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

Non-GAAP Financial Measures
This press release includes Adjusted EBITDAR for MGM Northfield Park, which is a "non-GAAP financial measure" as defined in Regulation G under the Securities Exchange Act of 1934, as amended. For a reconciliation of LTM Adjusted EBITDAR to net income see footnote 1 to this press release. This press release also includes a multiple based on LTM Adjusted EBITDA. LTM Adjusted EBITDA is LTM Adjusted EBITDAR less cash rent of $54 million (for more information on cash rent see footnote 2 of this press release).

(1)	Calculated as net income of $56.3 million, adjusted for $0.9 million of interest expense, $14.4 million of depreciation expense, $0.2 million of property transactions, net, and $65.2 million of rent expense associated with triple-net operating leases.
(2)	Represents initial agreed cash rent of $53 million, which is subject to a 2% escalator on May 1, 2026. On this date, the rent will increase to $54 million.

MGM RESORTS CONTACTS

Investment Community:
SARAH ROGERS, Senior Vice President of Corporate Finance
(702) 730-3942, srogers@mgmresorts.com 

HOWARD WANG, Vice President of Investor Relations
(702) 693-8711, hwang@mgmresorts.com

News Media:
BRIAN AHERN, Executive Director of Communications
media@mgmresorts.com

 

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SOURCE MGM Resorts International

FAQ

What price did MGM Resorts agree to sell MGM Northfield Park for (MGM)?

MGM agreed to sell the operations for $546 million in cash, subject to customary purchase price adjustments.

How much net cash will MGM Resorts receive from the MGM Northfield Park sale (MGM)?

MGM expects approximately $420 million in net cash proceeds after taxes and transaction costs.

What multiple of EBITDA does the MGM Northfield Park sale represent for MGM (MGM)?

The transaction represents about a 6.6x multiple on trailing twelve months Adjusted EBITDA through June 30, 2025.

How will the MGM Northfield Park sale affect MGM's rent obligations (MGM)?

At closing, MGM's master lease with VICI will be amended to reduce annual cash rent by $54 million.

When is the MGM Northfield Park sale expected to close for MGM (MGM)?

The transaction is expected to close in the first half of 2026, subject to regulatory approvals and customary conditions.

What were MGM Northfield Park's recent operating results referenced in the sale (MGM)?

For the twelve months ended June 30, 2025, MGM Northfield Park reported $137 million of Adjusted EBITDAR.