Published on 3/25/2024 in the Prospect News High Yield Daily.
New Issue: MGM Resorts prices $750 million eight-year notes at par to yield 6½%
By Abigail W. Adams
Portland, Me., March 25 – MGM Resorts International priced $750 million of eight-year senior notes (B1/BB-/BB-) at par to yield 6½% in a Monday drive-by, according to an FWP filing with the Securities and Exchange Commission.
Pricing came at the midpoint of talk for a yield in the 6½% area, according to a market source. Early guidance was for a yield in the 6¾% area.
The notes are non-callable for three years.
Deutsche Bank Securities Inc. led the SEC-registered offering. BofA Securities, Inc., Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens JMP Securities, LLC, Fifth Third Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and Truist Securities, Inc. are also bookrunners.
Proceeds will be used to repay outstanding debt, including the company’s 6¾% senior notes due 2025.
MGM Resorts is a Las Vegas-based entertainment and hospitality company.
| Issuer: | MGM Resorts International
|
| Amount: | $750 million
|
| Issue: | Senior notes
|
| Maturity: | April 15, 2032
|
| Left bookrunner: | Deutsche Bank Securities Inc.
|
| Joint bookrunners: | BofA Securities, Inc., Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens JMP Securities, LLC, Fifth Third Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and Truist Securities, Inc.
|
| Co-managers: | Goldman Sachs & Co. LLC, PNC Capital Markets LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Milbank LLP
|
| Counsel to underwriters: | Cahill Gordon & Reindel LLP
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| First call: | April 15, 2027 at 103.25
|
| Trade date: | March 25
|
| Settlement date: | April 9
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Fitch: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 6½% area
|
| Marketing: | Drive-by
|
| Cusip: | 552953CJ8
|
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