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MGM's Growth Properties IPO Expected To Open In $18-$21/Share Range

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MGM's Growth Properties IPO Expected To Open In $18-$21/Share Range

MGM Growth Properties announced in a regulatory filing on Friday it will offer 50 million class A common shares to the public at a price between $18 and $21 per share.

MGM Growth Properties' stock will trade on the New York Stock Exchange under the ticker "MGP."

The REIT was recently formed as part of an initiative by the parent company, MGM Resorts International (NYSE: MGM) to reduce debt and drive its stock price higher. MGM Resorts will retain around 70 percent of the entity.

Related Link: Analyst: Buy MGM After Wynn Update

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The REIT will hold nine of MGM's casino resorts, of which six are based in Las Vegas. The properties outside of Las Vegas are located in Mississippi and Detroit.

The company expects to raise up to $1.1 billion and will use the proceeds to repay $868.1 million of the approximately $4.0 billion of indebtedness under the Bridge Facilities it assumed from MGM. The remainder of the cash will be used for general corporate purposes.

Shares of MGM Resorts were trading higher by nearly 2 percent Friday morning.

Image Credit: Public Domain

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