MGM to sell Treasure Island to Phil Ruffin

LAS VEGAS, Dec. 15 (UPI) -- MGM Mirage announced Monday it was selling its Treasure Island Hotel and Casino on the Las Vegas Strip to Ruffin Acquisition for $775 million.

The largely cash deal comes amid a business slump in Las Vegas and MGM said it expected the sale to provide a shot in the arm for the company's bottom line.

"This transaction creates value to our stakeholders through significantly increased liquidity and enhanced financial flexibility," MGM Chairman and CEO James Murren said in a written statement.

The transaction will consist of $500 million in cash and $275 million in secured notes. Closing is expected in the second quarter of 2009.

Treasure Island, a $450 million project, opened in 1993 with 2,885 rooms, including 220 suites, and a 90,000-square-foot casino.

MGM now owns such Strip stalwarts as the MGM Grand, The Bellagio and the Mandalay Bay hotel and convention center complex. It is also embarked on the massive City Centre retail and residential project.

Ruffin Acquisitions is wholly owned by Wichita, Kan., investor Phil Ruffin, a major player in Las Vegas development. Ruffin recently sold the New Frontier hotel and casino in downtown Las Vegas.

"The economy will be slow for a couple of years and I would expect the volumes to go down for a while, but since there's no debt, we'll weather that OK," Ruffin told the Wichita Eagle. "I still have faith in Vegas. It'll come back in two to three years.