| NEW YORK
NEW YORK Dec 12 MGM Resorts cut pricing
on its $1.5 billion, seven-year term loan B, sources told
Thomson Reuters LPC. The loan is now expected to price at 325bp
over Libor with a 1 percent Libor floor and a discount of 99.5.
Previously, the loan was talked at LIB+375, with a 1 percent
Libor floor and a 99.5 OID. The term loan B will be
The new credit will also include a $1.25 billion, five-year
revolving credit and a $1.25 billion, five-year term loan A.
The term loan A and the revolver will have covenants for minimum
Ebitda and maximum capital expenditures.
The term loan B will have 101 soft call protection in year
one. The term loan A and the term loan B will amortize at 1
percent per annum.
Bank of America Merrill Lynch and Deutsche Bank are joint
physical books, while Barclays and JP Morgan are lead arrangers
on the deal.
Books close and comments on the credit agreement are due at 12
p.m. tomorrow. At launch, the commitment deadline was set for
MGM Resorts International and MGM Grand Detroit, LLC are
borrowers on the new credit.
Proceeds will refinance existing debt and back general
corporate purposes. On December 6, MGM priced an upsized $1.25
billion issue of senior unsecured notes.
MGM Resorts International operates a portfolio of
destination resort brands, including Bellagio, MGM Grand,
Mandalay Bay and The Mirage.