MGM Resorts International, the biggest casino owner on the Las Vegas Strip, boosted the size of its offering of senior secured notes to $1.5 billion from $1.1 billion while cutting the size of a bank loan, according to a person familiar with the transaction.
MGM, which plans to issue the debt through CityCenter Holdings LLC and CityCenter Finance Corp. as soon as today, may sell $900 million of five-year, first-lien notes instead of $500 million, said the person, who declined to be identified because terms aren't set. The company cut the size of a first-lien term loan to $500 million from $900 million, the person said.
The first-lien notes may yield about 7.75 percent, the person said. The offering will also include $600 million of six- year, second-lien securities that may pay 10.75 percent to 11 percent, the person said. The interest rate may increase by 75 basis points if the company chooses to make payments on the second-lien notes in the form of more debt, the person said.
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