MGM Resorts plans to launch $4 billion credit facility on Friday

By Sara Rosenberg

New York, Dec. 6 - MGM Resorts International is set to hold a bank meeting on Friday to launch a new $4 billion senior secured credit facility, according to a market source.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are the joint physical books on the deal and joint lead arrangers with Barclays and J.P. Morgan Securities LLC.

The facility consists of a $1.25 billion five-year revolver, a $1.25 billion five-year term loan A and a $1.5 billion seven-year term loan B, the source said.

Covenants include a minimum trailing four-quarter EBITDA and capital expenditures limitations.

Proceeds will be used to fund a tender offer for the company's existing notes and repay existing credit facility borrowings.

Other funds for the refinancing will come from $1 billion of new senior notes and cash on hand.

MGM Resorts is a Las Vegas-based hospitality company, operating a portfolio of destination resort brands.

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