MGM Resorts International announces pricing of IPO by MGM Growth Properties LLC
- MGM Growth Properties
- Oppenheimer & Co. Inc.
- Deutsche Bank
- Union Gaming
- SunTrust Robinson Humphrey
- Credit Agricole
- Fifth Third Securities
- SMBC Nikko
- BNP Paribas
- Bank of America (BofA) Merrill Lynch
- J.P. Morgan
- Morgan Stanley
MGM Resorts International today announced the pricing of the initial public offering of 50,000,000 Class A common shares representing limited liability company interests by its subsidiary MGM Growth Properties LLC (MGP) at a public offering price of $21.00 per share for gross proceeds of $1.05 billion.
The Class A shares are expected to begin trading on the New York Stock Exchange on April 20, 2016 under the ticker symbol "MGP."
In addition, MGP has granted an option to the underwriters, exercisable for the next 30 days, to purchase up to 7,500,000 additional Class A shares at the public offering price, less the underwriting discount. The closing of the offering is expected to occur on April 25, 2016, subject to the satisfaction of customary closing conditions.
The proceeds of the offering will be used by MGP to purchase operating partnership units in a newly formed operating partnership that will acquire the real estate associated with Mandalay Bay, The Mirage, New York-New York, Luxor, Monte Carlo, Excalibur, The Park, MGM Grand Detroit, Beau Rivage and Gold Strike Tunica from the company. The company will hold a 76% economic interest in the Operating Partnership (73% if the underwriters' option is exercised in full) and will hold the single Class B share of MGP, which represents a majority of the total voting power of MGP's shares.
In connection with the Formation Transactions, the Operating Partnership will assume approximately $4.0 billion of bridge facility indebtedness from the company, which the Operating Partnership will repay with the proceeds of the IPO and certain debt financings to be entered into by the Operating Partnership on the closing date. The company will use the proceeds of the bridge facilities to refinance its senior secured credit facility and repay its senior notes due in 2016.
BofA Merrill Lynch, J.P. Morgan, Morgan Stanley and Evercore ISI are acting as joint lead book-running managers in the proposed offering by MGP.
Barclays, Citigroup and Deutsche Bank Securities are also acting as book-running managers in the proposed offering.
BNP Paribas, Fifth Third Securities, SMBC Nikko, SunTrust Robinson Humphrey, Credit Agricole CIB, Union Gaming, Scotiabank and Oppenheimer & Co. Inc. are acting as co-managers in the proposed offering.