MGM Growth ups revolver to $1.35 billion, gets $200 delayed-draw loan

By Sarah Lizee

Olympia, Wash., June 15 – MGM Growth Properties LLC amended its operating partnership's credit agreement to increase the revolving facility by $750 million to $1.35 billion and provide for a new $200 million delayed-draw term loan A, according to a press release.

The maturity dates of the revolver and existing $270 million term loan A facility were extended to 2023. The delayed-draw term loan A also matures 2023.

In addition, the revolving and term loan A facilities were repriced so that if total net leverage exceeds 5.75 times, the per annum rate would be Libor plus 225 basis points.

If total net leverage is greater than 5.25 times but less than or equal to 5.75 times, the rate would be Libor plus 200 bps, consistent with the current rate on the term loan B.

If total net leverage is less than or equal to 5.25 times, the rate would be Libor plus 175 bps, consistent with what the current rate on the term loan B would be if the operating partnership received an upgrade from a rating agency.

All other material provisions of the existing credit facility are unchanged.

"This increase in the term loan A and revolving credit facilities provides us with the flexibility to finance our recently announced acquisitions and additional liquidity for future investments,” Andy Chien, chief financial officer of MGM Growth, said in the release.

The company also said the conditions applicable to the previously announced extension of the term loan B facility to 2025 were satisfied in connection with the amendment.

MGM Growth Properties is a Las Vegas-based real estate investment trust engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts.

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