MGM Resorts obtains $1.675B Sofr-priced revolver

MGM Resorts International disclosed that it has obtained a $1.675 billion revolver due November 2026 with an interest rate benchmarked to the secured overnight financing rate. In connection with the entry into this new facility, the company's existing credit agreement from February 2020 has been repaid in full, with the revolving commitments terminated.

Pricing is tied to a leveraged-based grid, at Sofr+150-225, opening at Sofr+175. The facility also includes credit spread adjustments at different levels.

BofA Securities, Barclays, BNP Paribas Securities, Citi, Citizens Bank, Deutsche Bank Securities, Fifth Third, J.P. Morgan, The Bank of Nova Scotia, Sumitomo Mitsui and Truist Securities acted as joint lead arrangers and joint bookrunners. Morgan Stanley and Credit Agricole acted as joint lead arrangers. Bank of America is administrative agent.

The facility is covered by a rent adjusted total net leverage ratio set at 6x through Jan. 1, 2024, and then at 5.5x thereafter.

MGM Resorts owns and operates casino, hotel and entertainment resorts.