Published on 1/11/2012 in the Prospect News High Yield Daily.
New Issue: MGM Resorts sells upsized $850 million seven-year notes at par to yield 8 5/8%
By Paul A. Harris
Portland, Ore., Jan. 11 - MGM Resorts International priced a massively upsized $850 million issue of non-callable seven-year senior notes (B3/B-/) at par to yield 8 5/8% on Wednesday, according to an informed source.
The yield printed on top of yield talk.
Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC were the joint bookrunners for the quick-to-market issue, which was upsized from $500 million.
A provision that would have enabled the company to redeem the notes at par three months prior to maturity was removed.
The Las Vegas-based owner and operator of casino resorts plans to use the proceeds to repay a portion of its existing debt, including borrowings under the credit facility or outstanding debt securities.
| Issuer: | MGM Resorts International
|
| Amount: | $850 million, increased from $500 million
|
| Maturity: | Feb. 1, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Wells Fargo Securities, LLC
|
| Co-managers: | BNP Paribas Securities Corp., J.P. Morgan Securities LLC, RBS Securities Inc., SMBC Nikko Capital Markets Ltd., Morgan Stanley & Co. LLC, UBS Securities LLC, Commerz Markets LLC
|
| Coupon: | 8 5/8%
|
| Price: | Par
|
| Yield: | 8 5/8%
|
| Spread: | 729 bps
|
| Call protection: | Non-callable
|
| Trade date: | Jan. 11
|
| Settlement date: | Jan. 17
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 8 5/8% area
|
| Marketing: | Quick to market
|
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