MUMBAI: MGM Mirage has completed its previously announced sale of Treasure Island Hotel & Casino (TI) to Ruffin Acquisition, LLC for $775 million.

Ruffin Acquisition, LLC is wholly owned by Phil Ruffin.

At closing, MGM Mirage received $600 million in cash proceeds and a $175 million secured note bearing interest at 10% payable not later than 36 months after closing. Ruffin Acquisition, LLC has an option to prepay this note on or before 30 April , 2009 and receive a $20 million discount on the purchase price. The note is secured by the assets of TI and will be senior to any other financing.

"TI is in great hands with Phil Ruffin and we wish him and all of the property’s wonderful employees nothing but the best," said MGM Mirage chairman and CEO Jim Murren.

TI is located on the Las Vegas Strip and features 2,885 guest rooms and suites, approximately 87,000 square feet of gaming space, several fine and casual dining outlets, The Sirens of TI – the iconic pirate battle attraction, and Mystere, the first permanent production in Las Vegas by Cirque du Soleil.

"We are very excited to have acquired such a stellar resort in Treasure Island. The property is in pristine condition, ideally located in the heart of the Strip," said Ruffin.

As a result of the sale, MGM Mirage expects to report a substantial gain in the first quarter.