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MGM Resorts International Announces Pricing Of Initial Public Offering By MGM Growth Properties LLC

LAS VEGAS, April 19, 2016 /PRNewswire/ -- MGM Resorts International MGM, +0.70% (the "Company") today announced the pricing of the initial public offering of 50,000,000 Class A common shares representing limited liability company interests (the "Class A shares") by its subsidiary MGM Growth Properties LLC ("MGP") at a public offering price of $21.00 per share (the "IPO") for gross proceeds of $1.05 billion. The Class A shares are expected to begin trading on the New York Stock Exchange on April 20, 2016 under the ticker symbol "MGP." In addition, MGP has granted an option to the underwriters, exercisable for the next 30 days, to purchase up to 7,500,000 additional Class A shares at the public offering price, less the underwriting discount. The closing of the offering is expected to occur on April 25, 2016, subject to the satisfaction of customary closing conditions.

The proceeds of the offering will be used by MGP to purchase operating partnership units in a newly formed operating partnership (the "Operating Partnership") that will acquire the real estate associated with Mandalay Bay, The Mirage, New York-New York, Luxor, Monte Carlo, Excalibur, The Park, MGM Grand Detroit, Beau Rivage and Gold Strike Tunica from the Company (the "Formation Transactions"). The Company will hold a 76% economic interest in the Operating Partnership (73% if the underwriters' option is exercised in full) and will hold the single Class B share of MGP, which represents a majority of the total voting power of MGP's shares.

In connection with the Formation Transactions, the Operating Partnership will assume approximately $4.0 billion of bridge facility indebtedness from the Company, which the Operating Partnership will repay with the proceeds of the...


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