MGM Sells Treasure Island - MGM, LVS Up Pre Market

The Casino Stocks are ripping higher this morning, 12/15/08, as MGM Mirage is selling Treasure Island Casino to Phil Ruffin. This news is causing many of the Casino Stocks to trade up in pre market. MGM is up 23%, Las Vegas Sands ( LVS ) is up 13%. Keep these two stocks on your radars today.

MGM MIRAGE (MGM) and Ruffin Acquisition, LLC today announced that they have entered into an agreement whereby MGM MIRAGE, through its wholly-owned subsidiary The Mirage Casino-Hotel, will sell Treasure Island Hotel & Casino ("TI") to Ruffin Acquisition, LLC for $775 million. Ruffin Acquisition, LLC is wholly owned by Phil Ruffin.

The purchase price is to be paid at closing as follows: $500 million in cash and $275 million in secured notes bearing interest at 10%, with $100 million payable not later than 175 days after closing and $175 million payable not later than 24 months after closing. The notes, to be issued by Ruffin Acquisition, LLC, will be secured by the assets of TI and will be senior to any other financing.

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