RLPC: MGM Resorts to launch $4B refinancing

NEW YORK Thu Dec 6, 2012 10:25am EST

NEW YORK Dec 6 (Reuters) - MGM Resorts International is launching a $4 billion refinancing credit at a lender meeting at 11 a.m. Friday, sources told Thomson Reuters LPC. The new credit will be split between a $1.25 billion, five-year revolving credit, a $1.25 billion, five-year term loan A and a $1.5 billion, seven-year term loan B. The term loan B will be covenant-lite.

Bank of America Merrill Lynch and Deutsche Bank are joint physical books, while Barclays and JP Morgan are lead arrangers on the deal.

MGM Resorts International and MGM Grand Detroit LLC are borrowers on the new credit. Proceeds will refinance existing debt and back general corporate purposes. Existing corporate family ratings are B2/B-.

Today, MGM also announced cash tender offers and consent solicitations for any and all of its outstanding senior secured notes, and a new issuance of $1 billion in senior notes.

MGM Resorts International operates a portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage.

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