Published on 3/15/2012 in the Prospect News High Yield Daily.
New Issue: MGM Resorts sells upsized $1 billion 10-year notes at par to yield 7¾%
By Paul A. Harris
Portland, Ore., March 15 - MGM Resorts International priced an upsized $1 billion issue of 10-year senior notes (/B-/) at par to yield 7¾% on Thursday, according to a syndicate source.
The yield printed at the wide end of the 7 5/8% to 7¾% yield talk.
Bank of America Merrill Lynch, Barclays Capital Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market issue, which was upsized from $750 million.
The Las Vegas-based gaming and lodging company plans to use the proceeds to repay a portion of the $965 million owed to term loan lenders as of March 14, 2012 that did not agree to extend their commitments in connection with the amendment and extension transaction in February 2012.
The additional proceeds will be used to repay other debt under the company's senior credit facility or outstanding debt securities.
| Issuer: | MGM Resorts International
|
| Amount: | $1 billion, increased from $750 million
|
| Maturity: | March 15, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC
|
| Co-managers: | BNP Paribas Securities Corp., SMBC Nikko Capital Markets Ltd., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBS Securities Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, Commerz Markets LLC, Scotia Capital (USA) Inc.
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Call protection: | Non-callable
|
| Make-whole: | Treasuries plus 50 bps
|
| Trade date: | March 15
|
| Settlement date: | March 22
|
| Rating: | Standard & Poor's: B-
|
| Distribution: | SEC registered
|
| Price talk: | 7 5/8% to 7¾%
|
| Marketing: | Quick to market
|
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