BofA Agents Amendment of MGM Resorts’ Credit Facility
MGM Resorts International announced that it has completed the amendment and extension of its senior credit facility. The company received extending commitments from lenders representing approximately 62.3%, or $2.2 billion of the outstanding loans and commitments under its senior credit facility. As part of the amended and restated credit facility, approximately $1.8 billion in aggregate principal amount of the senior credit facility has been extended from February 21, 2014 to February 23, 2015.
Bank of America is the administrative agent for the amended and restated senior credit facility. The joint lead arrangers are Merrill Lynch, Pierce, Fenner & Smith, Barclays Capital, The Investment Banking Division of Barclays Bank, BNP Paribas Securities, Citibank North America, Commerzbank, Deutsche Bank Securities, J.P. Morgan Securities, Morgan Stanley Senior Funding, RBS Securities, SMBC Nikko Capital Markets, UBS Securities and Wells Fargo Securities.
In connection with the restatement, extending lenders received a 20% reduction of their previous credit exposures, unless waived by such lenders. In addition, extending lenders’ loans will be subject to a pricing grid that decreases the LIBOR spread by as much as 250 basis points based upon collateral coverage levels and the LIBOR floor on extended loans will be reduced from 200 basis points to 100 basis points.
“This amendment represents our continued commitment to improve our balance sheet, enhance our debt maturity profile and maximize our free cash flow,” said Dan D’Arrigo, executive vice president, CFO and treasurer of MGM Resorts International. “This is a testament to the strength of our financial relationships and the partnership we have enjoyed with our lenders over the years.”
MGM Resorts International is a global hospitality company, operating a portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage.