MGM Resorts ups term loan A, revolving facilities, extends to 2023

By Sarah Lizee

Olympia, Wash., Dec. 27 – MGM Resorts International said it amended its senior credit agreement to, among other things, increase its term loan A facility by roughly $520 million to $750 million, increase its revolving facility by $250 million to $1.5 billion and extend the maturity date of the facilities to 2023.

The company expects to use the proceeds from the new facilities to refinance existing debt, to fund recently announced transactions and for general corporate purposes, according to a press release.

Initial pricing on the amended revolving and term loan A facilities is expected to be Libor plus 225 basis points, a 50 bps reduction from the previous facilities.

“Our strong financial position has positioned the company to successfully complete this transaction. We appreciate the support of our bank partners,” Dan D'Arrigo, executive vice president, chief financial officer and treasurer, said in the release.

“We remain focused on maintaining a fortified balance sheet and achieving our consolidated net leverage ratio goal of 3 to 4 times by year-end 2020.”

MGM Resorts is a Las Vegas-based operator of destination resorts.

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