| Item 1.01 | Entry into a Material Definitive Agreement. |
On September 17, 2024, MGM Resorts International (the “Company”) issued $850,000,000 in aggregate principal amount of its 6.125% Senior Notes due 2029 (the “Notes”). The Notes were issued pursuant to the Indenture, dated as of April 9, 2024 (the “Base Indenture”), between the Company and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), as supplemented by the second supplemental indenture, dated as of September 17, 2024 (the “Second Supplemental Indenture”), among the Company, the subsidiary guarantors named therein and the Trustee. A copy of the Second Supplemental Indenture is filed herewith as Exhibit 4.1.
The Notes were offered and sold pursuant to the Company’s automatic shelf registration statement on Form S-3 (Registration No. 333-277326) filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2024 (the “Registration Statement”), as supplemented by the final prospectus supplement dated September 3, 2024 and filed with the SEC on September 5, 2024.
The Notes will be guaranteed, jointly and severally, on a senior basis by the Company’s subsidiaries that guarantee its senior credit facility and existing notes, except for Marina District Development Company, LLC and Marina District Development Holding Co., LLC, unless and until the Company obtains New Jersey gaming approval, and except for MGM Yonkers, Inc., unless and until the Company obtains New York gaming approval. The Notes will not be guaranteed by the Company’s foreign subsidiaries and certain domestic subsidiaries, including, among others, MGM China Holdings Limited, MGM National Harbor, LLC, Blue Tarp reDevelopment, LLC, MGM Grand Detroit, LLC, MGM CEE Holdco, LLC, MGM Sports & Interactive Gaming, LLC, and any of their respective subsidiaries.
The Company intends to use the net proceeds from the offering of the notes to (i) repay existing indebtedness, including its outstanding 5.750% senior notes due 2025 and (ii) pay transaction-related fees and expenses, with the remainder for general corporate purposes. Pending such use, the Company may invest the net proceeds in short-term interest-bearing accounts, securities or similar investments.
The above description of the Base Indenture, the Second Supplemental Indenture and the Notes are summaries only and are qualified in their entirety by the terms of such agreements and instruments, respectively. The Second Supplemental Indenture is incorporated by reference into the Registration Statement.
Underwriting Agreement
In connection with the offering of the Notes, on September 3, 2024, the Company entered into an underwriting agreement (the “Underwriting Agreement”) among the Company, the guarantors named therein and BofA Securities, Inc. as representative of the several underwriters named therein (the “Underwriters”). Pursuant to the Underwriting Agreement and subject to the terms and conditions expressed therein, the Company agreed to sell $850,000,000 in aggregate principal amount of the Notes and the Underwriters agreed to purchase the Notes for resale to the public.
The foregoing description of the Underwriting Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Underwriting Agreement, which is filed as Exhibit 1.1 hereto. The Underwriting Agreement is also incorporated by reference into the Company’s Registration Statement.
The representations, warranties and covenants contained in the Underwriting Agreement were made only for purposes of the Underwriting Agreement and as of the specific date (or dates) set forth therein, and were solely for the benefit of the parties to the Underwriting Agreement and are subject to certain limitations as agreed upon by the contracting parties. In addition, the representations, warranties and covenants contained in the Underwriting Agreement may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors. Investors are not third-party beneficiaries of the Underwriting Agreement and should not rely on the representations, warranties and covenants contained therein, or any descriptions thereof, as
