New Issue: MGM Resorts prices $500 million 10% six-year bullets to yield 10¼%

By Paul A. Harris

St. Louis, Oct. 25 - MGM Resorts International priced a $500 million issue of 10% senior bullet notes (expected Caa1/confirmed CCC+) at 98.897 to yield 10¼% on Monday, according to an informed source.

The yield printed on top of the price talk.

Bank of America Merrill Lynch, Barclays Capital, BNP Paribas and RBS Securities were the joint bookrunners for the quick-to-market deal.

The Las Vegas-based owner and operator of casino resorts will use the proceeds to repay a portion of its $1.2 billion term loan that is not extending.

Issuer:	MGM Resorts International
Face amount:	$500 million
Proceeds:	$494,485,000
Maturity:	Nov. 1, 2016
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, Barclays Capital Inc., BNP Paribas Securities Corp., RBS Securities Inc.
Co-managers:	Daiwa Capital Markets America, J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc., Commerzbank Capital Markets, Scotia Capital, UBS Investment Bank, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Wells Fargo Securities
Coupon:	10%
Price:	98.897
Yield:	10¼%
Spread:	874 bps
Call protection:	Non-callable (Treasuries plus 50 bps make-whole provision)
Trade date:	Oct. 25
Settlement date:	Oct. 28
Ratings:	Moody's: expected Caa1
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	10¼% area
Marketing:	Quick to market

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