By Paul A. Harris
Portland, Ore., Nov. 17 – MGM Growth Properties Operating Partnership LP in conjunction with MGP Finance Co-Issuer, Inc. priced an upsized a $750 million issue of 8.5-year senior bullet notes (B1/BB-/BB+) at par to yield 3 7/8% in a Tuesday drive-by, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of yield talk in the 4% area. Initial talk was in the low 4% area.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., 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.
The Las Vegas-based real estate investment trust plans to use the proceeds for general corporate purposes, which may include the redemption of up to $700 million of the operating partnership units held by MGM under the waiver agreement should MGM elect to exercise its right to cause the operating partnership to redeem those units for cash.
The issuer is a REIT engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts.
| Issuer: | MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc.
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| Amount: | $750 million, increased from $500 million
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| Maturity: | Feb. 15, 2029
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| Securities: | Senior notes
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., 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.
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| Co-managers: | Deutsche Bank Securities Inc., Truist Securities Inc., UBS Securities LLC, Morgan Stanley & Co. LLC and KeyBanc Capital Markets Inc.
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| Coupon: | 3 7/8%
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| Price: | Par
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| Yield: | 3 7/8%
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| Call protection: | Par call three months prior to maturity; otherwise non-callable
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| Trade date: | Nov. 17
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| Settlement date: | Nov. 19
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| Ratings: | Moody's: B1
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| S&P: BB-
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| Fitch: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 4% area
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| Marketing: | Drive-by
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