MGM Growth Properties to sell $1.05 billion senior notes in connection with spinoff

By Paul A. Harris and Sara Rosenberg

Portland, Ore., April 1 – MGM Growth Properties Operating Partnership LP plans to sell $1.05 billion of senior notes in connection with MGM Resorts International’s spinoff of gaming properties into a real estate investment trust, according to market sources.

Debt financing also includes a $2.75 billion senior secured credit facility via left lead BofA Merrill Lynch. The credit facility launched at a Friday bank meeting.

Proceeds will be used to help repay about $4 billion of debt that the operating partnership, a subsidiary of MGM Growth Properties, is expected to assume from MGM Resorts International and some of its subsidiaries, and for general corporate purposes.

Other funds for the transaction are expected to come from $800 million of equity proceeds.

MGM Growth Properties is Las Vegas-based real estate investment trust that is being spun off from MGM Resorts, a Las Vegas-based operator of resorts and casinos.

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