MGM Resorts International has announced the pricing of its public offering of $850 million in 6.125% senior notes due in 2029. The offering, initially planned for $675 million, has been increased due to strong investor interest. The transaction is expected to close on September 17, 2024, subject to standard closing conditions.
MGM Resorts intends to use the net proceeds from the offering for several purposes, including:
*
Repaying outstanding 5.750% senior notes due 2025:
This will help reduce the company’s existing debt burden.*
Covering transaction-related fees and expenses:
These include costs associated with the offering itself.*
General corporate purposes:
This could encompass various initiatives like expanding operations, investing in new technologies, or pursuing acquisitions.Until the funds are fully deployed, MGM Resorts may temporarily invest the proceeds in short-term, interest-bearing accounts or similar investments.
The senior notes are unsecured general obligations of MGM Resorts and are guaranteed by most of its wholly owned domestic subsidiaries. These notes will rank equally with all other existing and future senior unsecured debt of both the Company and its guarantors.
A group of financial institutions, including BofA Securities, J.P. Morgan Securities, Barclays Capital, BNP Paribas Securities, Citigroup Global Markets, Citizens JMP Securities, Deutsche Bank Securities, Fifth Third Securities, Morgan Stanley & Co., Scotia Capital (USA), SMBC Nikko Securities America, and Truist Securities, will act as joint book-running managers for the offering. Additionally, Goldman Sachs & Co., PNC Capital Markets, U.S. Bancorp Investments, Wells Fargo Securities, CBRE Capital Advisors, and Valtus Capital Group will serve as co-managers.
The offering is being conducted under a prospectus supplement to MGM Resorts’ existing shelf registration statement filed with the Securities and Exchange Commission (SEC). A final prospectus supplement will be filed with the SEC.
