MGM Resorts To Buy Operations Of The Cosmopolitan Of Las Vegas For $1.625 Bln Cash - Quick Facts

(RTTNews) - Entertainment company MGM Resorts International (MGM) announced Monday that it has entered into a definitive agreement with Blackstone to acquire the operations of The Cosmopolitan of Las Vegas for cash consideration of $1.625 billion, subject to customary working capital adjustments.

The transaction advances MGM Resorts' vision to be the world's premier gaming entertainment company. It also expects significant synergies and strategic value in adding The Cosmopolitan to the MGM Resorts portfolio.

Following the close of the transaction, MGM Resorts will enter into a 30-year lease agreement, with three 10-year renewal options, with a partnership among Stonepeak Partners, Cherng Family Trust and Blackstone Real Estate Income Trust, Inc., which will acquire The Cosmopolitan's real estate assets.

MGM Resorts will pay an initial annual rent of $200 million, escalating annually at 2% for the first 15 years and the greater of 2% or the CPI increase (capped at 3%) thereafter.

The transaction is expected to close in the first half of 2022, subject to regulatory approvals and other customary closing conditions.