MGM Mirage unloaded its Treasure Island Hotel & Casino on a Wichita, Kan., businessman for $775 million.
The deal, announced on Monday, outlines a purchase by Ruffin Acquisition L.L.C., owned by Paul Ruffin Sr., for $500 million in cash and $275 million in secured notes bearing interest at 10 percent, according to a statement released by MGM.
The Las Vegas-based company said Ruffin has agreed to pay the rest of the money in two years -- $100 million within 175 days of closing and the additional $175 within 24 months of the closing date.
MGM said that it expects the transaction to close by the end of the second quarter of 2009 and is anticipating a substantial gain on the sale.
“This transaction creates value to our stakeholders through significantly increased liquidity and enhanced financial flexibility," said James J. Murren, MGM’s chairman and chief executive, in a prepared statement.