MGM Resorts International Closes $1.05 Billion Senior Notes Issue

MGM Resorts International

disclosed that its fully-owned subsidiaries, MGP Escrow Issuer, LLC and MGP Escrow Co-Issuer, Inc. have completed Senior Notes offering of $1.05 billion principal amount. According to the company, the notes would carry an interest rate of 5.625% and was due 2024. MGM Resorts International said that the Senior Notes were privately placed at par value. The company revealed that the notes were issued in respect of the formation of MGM Growth Properties LLC ("MGP"), a real estate investment trust, which would be a subsidiary of the Company. The company indicated that following the consummation of some formation transactions, the Issuer will be merged with and into MGM Growth Properties Operating Partnership LP (the "OP"). Also, the company revealed that the net proceeds would be used to refinance indebtedness assumed by the OP in respect of the formation transactions and pay related expenses and fees. On Thursday, the stock traded down by 2.85%.