New Issue: MGM Resorts upsizes to $1 billion, prices eight-year notes at par to yield 6¾%

By Paul A. Harris

Portland, Ore., Sept. 14 - MGM Resorts International priced a massively upsized $1 billion issue of non-callable eight-year senior notes (B3/B-/) at par to yield 6¾%, according to a syndicate source.

The quick-to-market deal was upsized from $700 million, and the yield printed at the tight end of the 6¾% to 6 7/8% yield talk.

The joint bookrunners were Bank of America Merrill Lynch, Deutsche Bank Securities Inc., RBS Securities Inc. and SMBC Nikko Capital Markets Ltd.

The Las Vegas-based owner and operator of casino resorts plans to use the proceeds to repay a portion of its debt, which may include debt under the credit facility or outstanding debt securities.

Issuer:	MGM Resorts International
Amount:	$1 billion, upsized from $700 million
Maturity:	Oct. 1, 2020
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, Deutsche Bank Securities Inc., RBS Securities Inc., SMBC Nikko Capital Markets Ltd.
Co-managers:	Barclays, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC, Scotia Capital (USA) Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc.
Coupon:	6¾%
Price:	Par
Yield:	6¾%
Spread:	533 bps
Call protection:	Non-callable
Make-whole:	Treasuries plus 50 bps
Trade date:	Sept. 14
Settlement date:	Sept. 19
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	6¾% to 6 7/8%
Marketing:	Quick to market

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