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MGM Resorts Prices $4 Billion Senior Secured Credit Facilities

December 17, 2012, 07:36 AM

MGM Resorts International priced its $4 billion senior secured credit facilities, which includes a $1.2 billion revolving facility, a $1.05 billion term loan  A facility and a $1.75 billion term loan B facility.

The revolving and term loan A facilities will initially bear interest at LIBOR plus 3.00% percent, but will become 2.75% after being subjected to credit rating adjustments after six months.

The term loan B facility will bear interest at LIBOR plus 3.25% with a LIBOR floor of 1.00%.

Loan A facilities will mature in December  2017, while loan B facility will mature in December 2019.

The company intends to use the net proceeds from the offering, together with cash on hand and proceeds from previous senior note offering, to repurchase all of its outstanding senior notes tendered in the previously announced offers.

Proceeds will also be used to fund the redemption of any of the existing secured notes that are not tendered in the tender offers. The company is also planning  to refinance its existing senior credit facility and pay transaction-related fees and expenses.

The closing of the refinancing transactions, including the amended and restated credit agreement, is scheduled to be completed on December 20, subject to the execution of definitive documentation.

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