MGM Growth Properties whispers $350 million 10-year bullet to yield 4½%-4 5/8%; pricing Thursday

By Paul A. Harris

Portland, Ore., Sept. 7 – MGM Growth Properties LLC plans to price $350 million of 10-year senior bullet notes in a quick-to-market Thursday trade, according to market sources.

The Rule 144A and Regulation S deal is in the market with initial yield guidance of 4½% to 4 5/8%, a trader said.

J.P. Morgan Securities LLC is the lead.

The issuing entities are consolidated subsidiaries MGM Growth Properties Operating Partnership LP and MGP Finance Co-Issuer, Inc.

The Las Vegas-based real estate investment trust plans to use the proceeds to pay MGM Resorts International a portion of the $1,187,500,000 purchase price for the long-term leasehold interest and real property improvements related to the MGM National Harbor casino resort, including the refinancing of debt expected to be assumed by a subsidiary of MGM Growth Properties in connection with the transaction.

The MGM National Harbor transaction is expected to close in the fourth quarter of 2017, subject to regulatory approvals and other customary closing conditions.

MGM Growth Properties is engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts.

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