S&P rates MGM Growth notes BB-

S&P said it assigned its BB- issue-level rating and 3 recovery rating to MGM Growth Properties Operating Partnership LP’s proposed $500 million of senior unsecured notes due 2029 and placed the issue-level rating on CreditWatch with negative implications. MGP Finance Co-Issuer Inc. is the co-issuer of the notes. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 65%) in default.

The company is expected to use the proceeds for general corporate purposes, including redeeming up to $700 million of the operating partnership units held by parent MGMs Growth Properties LLC’s majority owner, MGM Resorts International. MGM Resorts has until Feb. 14, 2022, to exercise its redemption rights.

“The CreditWatch listing on MGP and its majority owner MGM Resorts reflect the significant stress on MGM Resorts’ revenue and cash flow across its portfolio this year and our expectation that it may experience a slower recovery than other gaming operators,” S&P said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.