Phil Ruffin buying Treasure Island Hotel and Casino

Billionaire Phil Ruffin is buying Treasure Island Hotel and Casino for $500 million from casino operator MGM Mirage Inc. His interests not only include casinos but also greyhound race tracks. Ruffin is purchasing the property through Ruffin Acquisition LLC. Besides the cash, Ruffin Acquisition also purchased $275 million in secured notes making the total value of the deal $775 million. The deal is set to close by the end of the second quarter of 2009 after clearing regulatory and governmental reviews.

Alan Feldman is the spokesperson for the MGM Mirage and said “This is a terrific deal for everyone involved. We are able to complete a transaction at the right price with no financing involved through any other third party.”

MGM Mirage Chief Executive James Murren said the sale would increase their financial flexibility and described Ruffin as “a known and trusted community partner.” MGM Mirage shares saw an 81 cent rise after the announcement of the sale. This was a 7.6% gain closing at $11.50 last Monday. MGM Mirage was formed in May 2000 when MGM Grand purchased Mirage Resorts Inc.

Ruffin described Treasure Island as the ideal location as it is in the heart of the strip. It is connected to The Mirage by a rail system and located along side the Encore resorts, Wynn Las Vegas, The Venetian, Palazzo towers and the Fashion Show retail mall.

Steve Wynn built Treasure Island in 1993 for $450 million. It currently has 2,885 guest rooms and suites and includes 90,000 square feet of restaurants, entertainment and gambling floor space. When it opened it showcased a public pirate show in front of the casino set on a replica pirate ship. In 2003, Mirage redid Treasure Island's image and it was recast as “TI” and the sexy “Sirens of TI” replaced the pirate show.