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MarketScreener Homepage  >  Equities  >  Nyse  >  MGM Resorts International    MGM

MGM RESORTS INTERNATIONAL

(MGM)
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MGM RESORTS INTERNATIONAL : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits (form 8-K)

11/20/2020 | 04:43pm EST

Item 1.01 Entry into a Material Definitive Agreement.

On November 19, 2020, MGM Growth Properties Operating Partnership LP (the "Issuer") and MGP Finance Co-Issuer, Inc. (the "Co-Issuer" and together with the Issuer, the "Issuers"), indirect subsidiaries of MGM Resorts International, a Delaware corporation (the "Company"), issued $750 million in aggregate principal amount of 3.875% senior notes due 2029 (the "notes") under an indenture dated as of November 19, 2020 (the "Indenture"), among the Issuers, the subsidiary guarantors party thereto and U.S. Bank National Association, as trustee. The notes were sold in the United States only to accredited investors pursuant to an exemption from the Securities Act of 1933, as amended (the "Securities Act"), and subsequently resold to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons in accordance with Regulation S under the Securities Act.

The Issuers plan to use the net proceeds of the offering for general corporate purposes, which may include the redemption of up to $700 million of the Issuer's operating partnership units held by the Company should the Company elect to exercise certain rights it holds to cause the redemption of such units for each.

The notes will mature on February 15, 2029. The Issuers will pay interest on the notes on February 15 and August 15 of each year, commencing on August 15, 2021. Interest on the notes will accrue at a rate of 3.875% per annum and be payable in cash.

The notes will be fully and unconditionally guaranteed, jointly and severally, by each of the Issuer's existing and future direct and indirect wholly owned material domestic subsidiaries that guarantees the Issuer's senior credit agreement or any other material capital markets indebtedness, other than certain excluded subsidiaries. The notes will also not be guaranteed by or be the obligations of the Company, MGM Growth Properties LLC, MGM Growth Properties OP GP LLC, the Company's other subsidiaries or, unless and until the Issuer obtains approval of the New York State Gaming Commission, MGP Yonkers Realty Sub, LLC.

The Issuers may redeem all or part of the notes at a redemption price equal to 100% of the principal amount of the notes plus, to the extent the Issuers are redeeming notes prior to the date that is three months prior to their maturity date, an applicable make whole premium, plus, in each case, accrued and unpaid interest.

The Indenture contains customary covenants that will limit the Issuers' ability and, in certain instances, the ability of the Issuers' subsidiaries, to borrow money, create liens on assets, make distributions and pay dividends on or redeem or repurchase stock, make certain types of investments, sell stock in certain subsidiaries, enter into agreements that restrict dividends or other payments from subsidiaries, enter into transactions with affiliates, issue guarantees of debt, and sell assets or merge with other companies. These limitations are subject to a number of important exceptions and qualifications set forth in the Indenture. A copy of the Indenture is incorporated by reference hereto as Exhibit 4.1.

Events of default under the Indenture include, among others, the following with respect to the notes: default for 30 days in the payment when due of interest on the notes; default in payment when due of the principal of, or premium, if any, on the notes; failure to comply with certain covenants in the Indenture for 60 days upon the receipt of notice from the trustee or holders of 25% in aggregate principal amount of the notes of such series; acceleration or payment default of debt of the Issuers or a significant subsidiary thereof in excess of a specified amount that remains uncured for 30 days; certain events of bankruptcy or insolvency; and the master lease or the guaranty related thereto terminating or ceasing to be effective in certain circumstances. In the case of an event of default arising from certain events of bankruptcy or insolvency with respect to the Issuers, all notes then outstanding will become due and payable immediately without further action or notice. If any other event of default occurs with respect to the notes, the trustee or holders of 25% in aggregate principal amount of the notes may declare all the notes to be due and payable immediately.

The description set forth above is qualified in its entirety by reference to the full text of the Indenture incorporated by reference hereto as Exhibit 4.1. This Current Report on Form 8-K does not constitute an offer to sell or the solicitation of an offer to buy the notes.

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Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an

Off-Balance Sheet Arrangement of a Registrant.

The information set forth in Item 1.01 with respect to the Indenture is incorporated by reference into this Item 2.03.

Item 9.01 Financial Statements and Exhibits.



(a) Not applicable.

(b) Not applicable.

(c) Not applicable.

(d) Exhibits:



Exhibit
  No.                                    Description

4.1           Indenture, dated as of November 19, 2020, among MGM Growth
            Properties Operating Partnership LP, MGP Finance Co-Issuer, Inc., the
            subsidiary guarantors party thereto and U.S. Bank National
            Association, as trustee (incorporated by reference to Exhibit 4.1 of
            the Current Report on Form 8-K of MGM Growth Properties LLC and MGM
            Growth Properties Operating Partnership LP filed on November 20,
            2020).

104         Cover Page Interactive Data File (embedded within the Inline XBRL
            document).

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© Edgar Online, source Glimpses

Stocks mentioned in the article
ChangeLast1st jan.
MGM GROWTH PROPERTIES LLC -0.16% 31.5 Delayed Quote.0.64%
MGM RESORTS INTERNATIONAL -1.30% 29.59 Delayed Quote.-6.09%
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