LAS VEGAS, March 22, 2012 /PRNewswire/ -- MGM Resorts
International (NYSE: MGM) today announced that it has completed its
public offering of $1.0 billion in
aggregate principal amount of 7.75% senior unsecured notes due
2022, which were issued at par. The Company received
approximately $985.9 million in net
proceeds.
The Company used the net proceeds to repay the full amount
outstanding under the term loans maturing February 2014 (approximately $941 million). The remaining proceeds will
be used to repay other indebtedness under the Company's senior
credit facility.
"We are very pleased with the strong market support for
our Company which allowed us to upsize the transaction to
$1.0 billion," said Dan D'Arrigo
Executive Vice President and Chief Financial Officer of MGM
Resorts. "This transaction marks another important milestone
for our Company as our first 10-year unsecured note offering since
2006, and demonstrates our continued commitment to strengthening
our balance sheet. This transaction will also allow us to
reduce the borrowing cost under our recently extended $1.8 billion credit facility due
2015."
The notes are general unsecured senior obligations of the
Company, guaranteed by substantially all of the Company's wholly
owned domestic subsidiaries which guarantee the Company's other
senior indebtedness, and equal in right of payment with, or senior
to, all existing or future unsecured indebtedness of the Company
and each guarantor.
BofA Merrill Lynch, Barclays Capital, J.P. Morgan and Wells
Fargo Securities were joint book-running managers for the
offering.
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or other jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
state or other jurisdiction.
The offering of the notes was made under the Company's shelf
registration statement, which became automatically effective upon
filing with the Securities and Exchange Commission. The Company has
filed a final prospectus supplement with the Securities and
Exchange Commission for the note offering to which this
communication relates. The final prospectus supplement may be
obtained for free by calling or e-mailing Merrill Lynch, Pierce,
Fenner & Smith Incorporated at 1-800-294-1322 or
dg.prospectus_requests@baml.com.
Statements in this release which are not historical facts are
"forward-looking" statements and "safe harbor statements" within
the meaning of Section 21E of the U.S. Securities Exchange Act
of 1934, as amended, and other related laws that involve risks
and/or uncertainties, including risks and/or uncertainties as
described in the Company's public filings with the Securities and
Exchange Commission. We have based those forward-looking
statements on management's current expectations and assumptions and
not on historical facts. Examples of these statements
include, but are not limited to, statements regarding how the
Company will use the proceeds of the offering. These
forward-looking statements involve a number of risks and
uncertainties. Among the important factors that could cause
actual results to differ materially from those indicated in such
forward-looking statements include market conditions for corporate
debt generally, for the securities of gaming, hospitality and
entertainment companies and for the Company's indebtedness in
particular. In providing forward-looking statements, the
Company is not undertaking any duty or obligation to update these
statements publicly as a result of new information, future events
or otherwise except as required by law.
SOURCE MGM Resorts International