Published on 3/27/2019 in the Prospect News High Yield Daily.
New Issue: MGM Resorts prices upsized $1 billion eight-year bullet at par to yield 5½%
By Paul A. Harris
Portland, Ore., March 27 – MGM Resorts International doubled the size of its deal to $1 billion from $500 million and priced the issue of eight-year senior bullet notes (existing ratings Ba3/BB-) at par to yield 5½%, according to market sources.
The yield printed in the middle of yield talk in the 5½% area and tighter than initial talk in the 5¾% area.
BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc., Fifth Third Securities Inc. and Morgan Stanley & Co. LLC were the joint bookrunners.
The Las Vegas-based hospitality and entertainment company plans to use the proceeds, including the additional proceeds resulting from the upsizing of the deal, together with cash on hand or borrowings under its revolving credit facility, to repurchase up to $1 billion of notes due 2020, with any excess proceeds to be used for general corporate purposes, which could include debt refinancing, paying dividends on its common stock or repurchasing its common stock under its share repurchase program.
| Issuer: | MGM Resorts International
|
| Amount: | $1 billion, increased from $500 million
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| Maturity: | April 15, 2027
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| Securities: | Senior notes
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| Bookrunners: | BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc., Fifth Third Securities Inc. and Morgan Stanley & Co. LLC
|
| Passive bookrunner: | BNP Paribas Securities Corp.
|
| Co-managers: | Citizens Capital Markets Inc., Credit Agricole CIB, Scotia Capital, SunTrust Robinson Humphrey Inc., Capital One Securities Inc. and Comerica
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2027, then callable at par, otherwise non-callable
|
| Trade date: | March 27
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| Settlement date: | April 10
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| Existing ratings: | Moody's: Ba3
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| S&P: BB-
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| Distribution: | SEC registered
|
| Marketing: | Quick to market
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| Talk: | 5½% area, revised from initial talk in 5¾% area
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