MGM Resorts International has announced a significant financial move with plans to issue $675 million in senior notes, set to mature in 2029. The company intends to use the net proceeds from this offering to reduce its existing debt obligations, specifically targeting the repayment of its outstanding 5.750% senior notes that are scheduled to mature in 2025. Until the funds are utilized for debt repayment, MGM Resorts may temporarily invest the proceeds in short-term interest-bearing accounts, securities, or comparable investments.
The newly offered notes are unsecured senior obligations of the company. Importantly, these notes will be backed by guarantees from nearly all of MGM Resorts’ wholly-owned domestic subsidiaries, which also provide support for the company’s other senior debt obligations. This means the notes will enjoy equal payment rights with all current and future senior unsecured debts of MGM Resorts and its guarantors.
A notable group of financial institutions will be involved in the notes offering. BofA Securities, Inc., J.P. Morgan Securities LLC, Barclays Capital Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens JMP Securities, LLC, Deutsche Bank Securities Inc., Fifth Third Securities, Inc., Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., and Truist Securities, Inc. are serving as joint book-running managers for the offering. In addition, Goldman Sachs & Co. LLC, PNC Capital Markets LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, CBRE Capital Advisors, Inc., and Valtus Capital Group, LLC are acting as co-managers for the offering. This strategic move by MGM Resorts signifies a proactive approach to managing its debt portfolio and is a testament to the company’s commitment to financial stability. The offering is expected to provide the company with greater financial flexibility and strengthen its overall financial position.
