LAS VEGAS, Dec. 27, 2018 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) (the "Company") today announced that it has successfully amended its senior credit agreement to, among other things, increase its term loan A facility by approximately $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 indebtedness, fund recently announced transactions and for general corporate purposes.
"Our strong financial position has positioned the Company to successfully complete this transaction. We appreciate the support of our bank partners," said Dan D'Arrigo, Executive Vice President, Chief Financial Officer and Treasurer. "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."
Initial pricing on the amended revolving and term loan A facilities is expected to be LIBOR plus 2.25%, a 50 basis point reduction from the previous facilities.
ABOUT MGM RESORTS INTERNATIONAL
MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 28 unique hotel offerings including some of the most recognizable resort brands in the industry. Expanding throughout the U.S. and around the world, the company in 2018 opened MGM Springfield in Massachusetts, MGM COTAI in Macau, and the first Bellagio-branded hotel in Shanghai. The 81,000 global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information visit us at www.mgmresorts.com.
Statements in this release that are not historical facts are "forward-looking" statements and "safe harbor statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including those described in the Company's public filings with the SEC. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, how the Company expects to use the proceeds from the facility and the Company's ability to achieve its net leverage target. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.
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SOURCE MGM Resorts International