MGM MGM Resorts International

MGM Growth Properties LLC on Friday put a price range of $18 to $21 a share on its initial offering of stock, which could raise as much as $1.2 billion for the real-estate investment trust being created by casino operator MGM Resorts International.

The REIT will initially hold nine MGM casino resorts, six of them on the Las Vegas Strip. Those properties include: the Mandalay Bay; The Mirage; Monte Carlo; New York-New York; Luxor and Excalibur; and The Park, a dining and entertainment complex that opened this month.

Outside of Las Vegas, the company will own the MGM Grand Detroit; and the Beau Rivage and Gold Strike Tunica, both of which are located in Mississippi.

MGM Growth said it would use the proceeds from the offer to pay down debt. It also plans to expand by acquiring similar properties and targeting other types of real-estate assets within the entertainment, hospitality and leisure sectors.

The REIT plans to sell 50 million Class A shares, plus 7.5 million shares in a so-called overallotment option, which gives underwriters the opportunity to sell additional shares under certain circumstances.

MGM Growth is planning to trade on the New York Stock Exchange under the symbol "MGP."

MGM Resorts announced plans to form the REIT in October in an effort to reduce debt and drive its stock price—taking a cue from some of its rival casino operators.

MGM Resorts plans to retain about 70% of the entity in an effort to monetize the value of its real estate, which some activist investors have contended hasn't been properly valued by the stock market.

Shares of MGM Resorts, up 5.8% in the past three months, were unchanged premarket from Thursday's close at $21.67.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

April 08, 2016 09:15 ET (13:15 GMT)

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