MGM Growth Properties driving by with $500 million five-year notes; whisper 5¼% area

By Paul A. Harris

Portland, Ore., June 2 – MGM Growth Properties Operating Partnership LP and MGP Finance Co-Issuer, Inc. plan to price a $500 million offering of five-year senior notes (expected ratings B1/BB-/BB+) in a Tuesday drive-by trailing a mid-morning conference call with investors, according to market sources.

Initial price talk has the notes coming to yield in the 5¼% area, a trader said.

Citigroup Global Markets Inc. is the lead bookrunner. BofA Securities Inc., Barclays, BNP Paribas Securities Corp., Citizens Capital Markets Inc., Credit Agricole CIB, Fifth Third Securities Inc., J.P. Morgan Securities LLC, Scotia Capital (USA) Inc. and SMBC Nikko Securities America Inc. are the joint bookrunners.

Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., Morgan Stanley & Co. LLC and KeyBanc Capital Markets Inc. are the co-managers.

The Rule 144A and Regulation S for life notes feature a par call three months prior to maturity but are otherwise non-callable.

The Las Vegas-based real estate investment trust will use proceeds to pay down its revolving credit facility.

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