LAS VEGAS, March 15, 2012 /PRNewswire/ -- MGM Resorts
International (NYSE: MGM) today announced that it has priced a
public offering of $1.0 billion in
aggregate principal amount of 7.75% senior notes due 2022 at
par. The transaction is expected to close on March 22, 2012.
BofA Merrill Lynch, Barclays Capital, J.P. Morgan and Wells
Fargo Securities are joint book-running managers for the
offering.
The Company plans to use the net proceeds to repay the full
amount owed to term loan lenders that did not agree to extend their
commitments in connection with the amendment and extension
transaction in February 2012
(approximately $965 million as of
March 14, 2012), with the additional
proceeds to be used to repay other indebtedness under the Company's
senior credit facility or outstanding debt securities.
The notes will be 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.
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 is being made under the Company's
shelf registration statement, which became automatically effective
upon filling 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. When available, 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 the Company's
to close on the sale of the notes and 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