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MGM Resorts to launch credit facility amend and extend on Friday
By Sara Rosenberg
New York, Feb. 2 - MGM Resorts International will be holding a conference call on Friday to launch an amendment to its $3.5 billion senior credit facility to extend the maturity to Feb. 23, 2015 from Feb. 21, 2014, according to an informed source.
The facility consists of a roughly $1.7 billion revolver and a roughly $1.8 billion term loan.
Pricing on the extended debt will be subject to a grid that ranges from Libor plus 250 basis points to 500 bps based upon collateral coverage levels, and there will be a 1% Libor floor, the source said. By comparison, non-extended pricing is Libor plus 500 bps with a 2% Libor floor.
In addition, the company is seeking to modify covenants.
The source explained that since the company's last amendment and restatement, operations and liquidity profile have improved, as did market conditions, which is why it is taking this opportunity to get better terms on its credit facility.
Consents are due on Feb. 16, and lenders approving the amendment will receive 20% reductions of their existing commitments.
Amendment and extension fees being offered total 50 bps, the source said.
"We have support from our leading lenders for our amendment and extension, and we are working with the balance of our lenders to achieve maximum participation," Dan D'Arrigo, executive vice president, chief financial officer and treasurer, said in a company news release.
"This amendment and extension will extend a significant portion of our credit facilities, lower our pricing and enhance our debt maturity profile," D'Arrigo added in the release.
MGM Resorts is a Las Vegas-based owner and operator of casino resorts.
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