MGM Resorts trims spread on $1.5 billion term B to Libor plus 325 bps

By Sara Rosenberg

New York, Dec. 12 - MGM Resorts International reduced pricing on its $1.5 billion seven-year term loan B to Libor plus 325 basis points from Libor plus 375 bps, according to a market source.

The 1% Libor floor, original issue discount of 99½ and 101 soft call protection for one year were left unchanged.

The company's $4 billion senior secured credit facility (Ba2/BB) also includes a $1.25 billion five-year revolver and a $1.25 billion five-year term loan A, with both of these tranches priced at Libor plus 300 bps with no Libor floor.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are the joint physical books on the deal and joint lead arrangers with Barclays and J.P. Morgan Securities LLC.

Proceeds from MGM Resorts' credit facility will be used to fund a tender offer for its existing notes and repay existing credit facility borrowings.

Other funds for the refinancing will come from $1.25 billion of new senior notes that were upsized from $1 billion, and cash on hand.

As a result of the notes upsizing, the amount to be borrowed under the new revolver was reduced.

MGM Resorts is a Las Vegas-based hospitality company, operating a portfolio of destination resort brands.

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