Published on 4/23/2020 in the Prospect News High Yield Daily.
New Issue: MGM Resorts prices upsized $750 million 6¾% five-year notes at par
Chicago, April 23 – MGM Resorts International priced an upsized $750 million issue of 6¾% five-year senior notes (Ba3/BB-) at par on Thursday, according to an FWP filing with the Securities and Exchange Commission and a market source.
Initial talk had the deal coming to yield 7% to 7¼%, a bond trader said. The deal was upsized from $500 million.
J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, Citigroup Global Markets Inc., BNP Paribas Securities Corp., Citizens Capital Markets Inc., Fifth Third Securities Inc., Scotia Capital (USA) Inc. and SMBC Nikko Securities America Inc. are the joint bookrunners.
The notes come with two years of call protection.
The Las Vegas-based entertainment and hospitality company plans to use the proceeds for general corporate purposes, including increasing its liquidity.
| Issuer: | MGM Resorts International
|
| Amount: | $750 million, increased from $500 million
|
| Maturity: | May 1, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, Citigroup Global Markets Inc., BNP Paribas Securities Corp., Citizens Capital Markets Inc., Fifth Third Securities Inc., Scotia Capital (USA) Inc. and SMBC Nikko Securities America Inc.
|
| Co-managers: | Credit Agricole CIB, Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc.
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 639 bps over Treasuries
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until May 1, 2022, then callable at 103.375 in 2022, 101.688 in 2023 and thereafter at par
|
| Trade date: | April 23
|
| Settlement date: | May 4
|
| Existing ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
| Talk: | 7% to 7¼% yield
|
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