MGM Growth Properties expects to issue notes, get term loans A, B

By Tali Rackner

Norfolk, Va., March 22 – MGM Growth Properties LLC said MGM Growth Properties Operating Partnership LP is expected to incur new debt in the form of a senior secured revolving credit facility, a senior secured term loan A facility, a senior secured term loan B facility and senior unsecured notes.

Net proceeds will be used to refinance a portion of the debt under the bridge facilities assumed by the operating partnership from MGM Resorts International and some of its subsidiaries in connection with a series of formation transactions, according to an S-11 filing with the Securities and Exchange Commission.

Proceeds from the revolver drawn from time to time after the offering date are expected to be used for general corporate purposes.

Proceeds received by the operating partnership in connection with MGM Resorts’ purchase of operating partnership units will be used to refinance the remaining debt under the bridge facilities assumed by the operating partnership from MGM Resorts and some of its subsidiaries in connection with the formation transactions.

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

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