MGM Growth Properties announced it will seek to raise $750 million in new debt, but did not disclose plans for the financing.
The company said the proceeds may be used to redeem up to $700 million in partnership shares held by MGM Resorts, which owns about 57 percent of MGM Growth.
The company initially announced it was seeking $500 million in new debt, but then raised the figure to $750 million.
MGM CEO Bill Hornbuckle said during a conference call that the company had until February 2022 to execute on the share redemption.
“We’re going to let that go by the wayside,” Hornbuckle said. “We have between now and then we’ll clearly do something.”
MGM Growth CFO Andy Chen said the company does not have any debt maturities until 2023. MGM Growth had $3.55 billion in long term debt as of Sept. 30, CDC Gaming reported.
Analysts have previously asked the company about any interest in acquiring two resorts and a convention complex on the Strip operated by Las Vegas Sands. The company had been in talks reportedly to sell The Venetian and Palazzo, seeking at least $6 billion for the hotel-casinos and the Sands Expo and Convention Center.
MGM Growth CEO James Stewart told analysts the trust would consider adding another Strip resort as long as the company has a suitable partner. The company owns the land and real estate of eight Strip properties and 15 properties in eight states, all of which are managed by MGM Resorts International.
“We think a deal could get done on the Strip. We would definitely be interested,” Stewart said. He added that an operating tenant, “has to be one who has a great incentive to keep on paying the rent because there could be some bumpy times here in the next little while.”
