MGM Grand Trades Pirate Ship For A Treasure Chest of Cash

In a attempt to raise cash during the economic slowdown the MGM Grand has sold one of its marquee properties, Treasure Island to Phil Ruffin. The MGM Grand will receive a total of $775 million, $500 million in cash and $275 million in secured notes. Investors reacted positively to the news of the sale in early trading Monday as MGM shares traded up almost $2.00 before giving much of the gain back. MGM shares are down from their 12 month high of $89.46 to the $11 range as revenues and tourism have declined in Las Vegas.  MGM Grand expects to report a sizable gain on the sale, it acquired Treasure Island with its take over of Mirage Resorts in 2000

Ruffin a real estate mogul who previously owned the New Frontier hotel and casino in Las Vegas before selling it in 2007, a move which appears to have been pretty savy given the current economic climate in Las Vegas. Ruffins looks to have sold high and bought low with perfect market timing. Ruffin has a large portfolio of properties which include hotels and gambling properties across the US. His holdings also include greyhound racetracks and oil.

Treasure Island Casino

• Located:3300 Las Vegas Boulevard South, Las Vegas, Nevada
• 4 Star Rated
• 2900 rooms
• Built By Steve Wynn in 1993 for $450 Million
• Originally Marketed to Families With its Disney Like buccaneers theme
• Renovated in 2003 to focus more on adults
• Famous for live free shows and on its pirate ship in Sirens’ Cove
• The casino also began calling itself TI for short as part of a way of appealing to more adults and distancing itself from its family friendly past