When it was built, the gold tower was reported to be the tallest building in Mississippi. We view the transaction as largely equity-value neutral.”Īt 32 stories tall, the iconic property is one of the most recognizable buildings in Tunica and towers above all other structures. “In its entirety, based on 2021 results, which were inflated, MGM is exiting the asset at a multiple of 6.7x 2021 EBITDAR, or 8.5x the average EBITDAR from 20. “Thus, when looked at in its entirety, in exchange for the $115 million of EBITDAR, MGM is receiving $450 million of gross cash proceeds ($350 million net cash proceeds) and debt (capitalized rent) relief of $320 million, or total gross proceeds of $770 million,” Santarelli said. “This acquisition will enable us to better serve our mission of growing the Cherokee Nation’s economy, while also having a significant positive impact on the local economies we serve.” “We look forward to expanding our gaming and hospitality businesses as we execute on our strategic plan to grow our footprint outside of the Cherokee Nation Reservation,” Chuck Garrett, chief executive officer of Cherokee Nation Businesses, said in a statement. The Cherokee Nation and its businesses employ 11,000 people. The company owns and operates Hard Rock Hotel & Casino Tulsa and nine Cherokee casinos, including a horse-racing track, three resort-hotels, three golf courses, and other retail operations. The deal sets the stage for MGM to build its balance sheet for other projects, while the Cherokee Nation’s purchase reflects the tribe’s ongoing pursuits to diversify off reservations into commercial gaming across the country.Ĭherokee Nation Entertainment is the gaming and hospitality company of the Cherokee Nation, the largest Indian nation in the U.S.
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