Ownership change for Springfield casino

MGM Resorts International and MGM Growth Properties have entered into a definitive agreement whereby MGP will purchase the real estate assets associated with MGM Springfield in the US state of Massachusetts.

MGM Resorts will lease the property from MGP and continue to operate the property following the consummation of the transaction, with no expected change to its employees, vendors, customers and the community.

MGP will pay total consideration of approximately $400m in cash (which may include cash on hand or cash from financings, including borrowings under MGP’s revolving credit facility).

MGM Springfield will be added to the existing Master Lease between MGM Resorts and MGP and the rent payment to MGP will increase by $30m, of which $27m will be base rent and $3m will be percentage rent.  The sale is expected to close in the fourth quarter of 2021, subject to regulatory approvals and other customary closing conditions.