MGM Resorts to sell $500 million 10-year bullet in Tuesday drive-by

By Paul A. Harris

Portland, Ore., Aug. 16 – MGM Resorts International plans to price a $500 million offering of 10-year senior bullet notes (expected ratings B1/BB-) on Tuesday following a late-morning conference call with investors, according to market sources.

Early guidance has the deal coming with a yield in the 4¾% area, according to a portfolio manager.

Joint physical bookrunner Barclays will bill and deliver for the public offering. BofA Merrill Lynch and J.P. Morgan Securities LLC are also joint physical bookrunners.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Morgan Stanley & Co. LLC, Sumitomo, Credit Agricole CIB, Fifth Third Bank and SunTrust Robinson Humphrey Inc. are joint bookrunners.

The notes feature a make-whole call at Treasuries plus 50 basis points until three months prior to maturity, then become callable at par, but are otherwise non-callable.

The Las Vegas-based gaming, hospitality and entertainment company plans to use the proceeds to redeem its 7 5/8% notes due 2017.

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