• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

MGM Resorts finalises creation of REIT entity

Apr 26, 2016 Newsdesk Latest News, Top of the deck, World  


MGM Resorts finalises creation of REIT entity

Casino operator MGM Resorts International on Monday announced that it has completed the necessary transactions to establish a subsidiary, MGM Growth Properties LLC, as a publicly traded real estate investment trust (REIT).

MGM Growth Properties closed last week its initial public offering for 57.5 million shares priced at US$21.00 a share – the high end of its target range. It raised proceeds of approximately US$1.1 billion, after deducting underwriting discounts and its estimated expenses for the offering, said MGM Resorts.

The REIT is being spun out of MGM Resorts and includes 10 MGM Resorts properties – all in the United States – including seven casino resorts on the Las Vegas Strip, according to regulatory filings.

As of December 31, the 10 properties to be covered by the REIT collectively accounted for 24,466 hotel rooms; approximately 2.5 million square feet (232,258 sq metres) of convention space; more than 100 retail outlets; more than 200 food and beverage outlets; and approximately 20 entertainment venues, said MGM Resorts in a Monday press release.

MGM Resorts – the parent company of Macau-based MGM China Holdings Ltd – remains a majority owner of MGM Growth Properties after the IPO. The U.S.-based casino operator will continue to manage the assets owned by MGM Growth Properties under a 10-year lease agreement. The lease has an option for renewal in tranches of five years at a time.

MGM Resorts will retain 100 percent ownership of some of its most iconic properties, including the Mirage (pictured), the Bellagio and MGM Grand Las Vegas, as well as its equity interest in MGM China Holdings.

In connection with the creation of the REIT entity, MGM Resorts said it entered into a new amended and restated credit agreement, following which it will redeem for cash all US$1.23-billion – measured as an aggregate principal amount – of its outstanding 7.50-percent senior notes and its 10-percent senior notes, both due in 2016.

The company’s new credit facility is comprised of a US$1.2-billion revolving credit facility and a US$250-million term loan and replaces in its entirety its prior credit agreement, the firm said in Monday’s statement.

MGM Resorts chairman and chief executive, Jim Murren, said the creation of the REIT entity allowed MGM Resorts to strengthen its balance sheet and gave it financial flexibility.

“We have achieved a historic milestone at MGM Resorts, and we look forward to working with MGM Growth Properties to further solidify our position as the leader in entertainment, gaming, and hospitality,” said Mr Murren.


  • tweet
Related articles
  • Nagasaki says Credit Suisse woes not to impact IR plan
    Nagasaki says Credit Suisse woes not to...

    Mar 20, 2023  

  • U.S.-linked Macau ops see pent up demand: JPM forum
    U.S.-linked Macau ops see pent up...

    Mar 15, 2023  

More news
  • Macau GGR for March 1 to 19 at US$845mln: JP Morgan
    Macau GGR for March 1 to 19 at...

    Mar 20, 2023  

  • Let’s Win hosts grand opening for club at Hoiana in Vietnam
    Let’s Win hosts grand opening for...

    Mar 20, 2023  


Latest News

Nagasaki says Credit Suisse woes not to impact IR plan

Nagasaki says Credit Suisse woes not to impact IR plan

Mar 20, 2023  

Credit Suisse Group AG, described last year by Nagasaki governor Kengo Oishi as one of several potential “financial arrangers” for a proposed casino resort project within that Japanese prefecture...
Read More
Macau GGR for March 1 to 19 at US$845mln: JP Morgan

Macau GGR for March 1 to 19 at US$845mln: JP Morgan

Mar 20, 2023  

Let’s Win hosts grand opening for club at Hoiana in Vietnam

Let’s Win hosts grand opening for club at Hoiana in...

Mar 20, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


1.59 million

Total number of visitor arrivals to Macau in February



Most Popular

  • Universal Ent seeks to end SPAC deal for Okada Manila listingUniversal Ent seeks to end SPAC deal for Okada Manila… March 20, 2023
  • Let’s Win hosts grand opening for club at Hoiana in VietnamLet’s Win hosts grand opening for club at Hoiana in… March 20, 2023
  • Macau GGR for March 1 to 19 at US$845mln: JP MorganMacau GGR for March 1 to 19 at US$845mln: JP Morgan March 20, 2023
  • Macau visitor tally up 14pct m-o-m in FebruaryMacau visitor tally up 14pct m-o-m in February March 17, 2023
  • LET Group flags 2022 loss of US$52mln, Hoiana repays loanLET Group flags 2022 loss of US$52mln, Hoiana repays loan March 20, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us