MGM Growth Properties LLC (NYSE: MGP) (the “Company”) today announced that it has successfully amended its operating partnership’s credit agreement to provide for a $750 million increase and extension of the revolving facility to $1,350 million due 2023, extend the maturity date of the existing $270 million term loan A facility to 2023 and provide for a new $200 million delayed draw term loan A due 2023.
In addition, the revolving and term loan A facilities were repriced such that if total net leverage exceeds 5.75x the per annum rate would be LIBOR plus 2.25%; if total net leverage is greater than 5.25x but less than or equal to 5.75x the per annum rate would be LIBOR plus 2.00% (which is consistent with the current rate applicable to the term loan B facility); and if the total net leverage is less than or equal to 5.25x the per annum rate would be LIBOR plus 1.75% (which is consistent with what the current rate applicable to the term loan B facility would be if the operating partnership received an upgrade from either rating agency). All other material provisions of the existing credit facility remain unchanged.
“This increase in the term loan A and revolving credit facilities provides us with the flexibility to finance our recently announced acquisitions and additional liquidity for future investments. We lowered our cost of capital with the repricing, and the extension positions MGP to successfully execute on our business strategy,” said Andy Chien, CFO of MGM Growth Properties. “We appreciate the continued support of our lenders and the additional funding capacity provided by this amendment as we continue to look for accretive transactions to grow our real estate portfolio.”
In addition, the conditions applicable to the previously announced extension of the term loan B facility to 2025, were satisfied in connection with this amendment.
WANT TO BUILD A FINANCIAL EMPIRE?
Subscribe to the Global Banking & Finance Review Newsletter for FREE Get Access to Exclusive Reports to Save Time & Money
By using this form you agree with the storage and handling of your data by this website. We Will Not Spam, Rent, or Sell Your Information.