MGM Resorts ups tender cap for 5¼%, 6¾% notes due 2020 to $1 billion

By Wendy Van Sickle

Columbus, Ohio, March 27 – MGM Resorts International increased the tender cap to $1 billion in its cash tender offers to purchase its outstanding $1 billion 6¾% senior notes due 2020 and $500 million 5¼% senior notes due 2020, according to a news release issued Wednesday evening.

The tender offer was announced earlier Wednesday with an initial cap of $500 million.

The company is offering a total consideration of $1,052.66 for each $1,000 principal amount of 6¾% notes and $1,019.88 for each $1,000 principal amount of 5¼% notes.

The total consideration includes an early tender premium of $30.00 per $1,000 of notes tendered by 5 p.m. ET on April 9, the early tender date.

Holders tendering after the early deadline will only be eligible to receive the tender offer consideration, which is the total consideration less the early tender premium.

The company will also pay accrued interest to but excluding the applicable settlement date.

The tender offers will expire at midnight ET at the end of April 23.

Tenders may be withdrawn at or prior to 5 p.m. ET on April 9.

Payment for early tendered notes is expected to be made on April 10. Settlement of any remaining tenders is expected to be made on April 24.

Subject to the offer cap and proration, notes will be accepted according to acceptance priority. The 6¾% notes have priority over the 5¼% notes, provided that notes tendered by the early tender date will be accepted for purchase with priority over notes tendered after the early deadline, regardless of the priority level of the series of the later tendered notes.

The company may, but is not obligated to, increase the tender cap at any time.

The tender offers are not conditioned on any minimum amount of notes being tendered but are subject to a financing condition.

MGM intends to fund the tender offers with proceeds from a proposed offering of debt securities and, if needed, other available funds such as cash on hand or borrowings under its senior secured revolving credit facility.

BofA Merrill Lynch (888 292-0070 or 980 388-3646) is the dealer manager for the tender offers. Global Bondholder Services Corp. (866 794-2200 or for banks and brokers 212 430-3774) is the information agent.

MGM Resorts is a Las Vegas-based operator of destination resorts.

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