LAS VEGAS—MGM Growth Properties LLC (MGP) has completed its initial public offering of 50-million Class A common shares, and the exercise in full of the underwriters’ option to purchase an additional 7.5-million Class A shares, at a price to the public of $21 per share for proceeds of approximately $1.1 billion, after deducting underwriting discounts and estimated offering expenses.
MGP used the proceeds from the IPO to purchase operating partnership units in a newly formed operating partnership that acquired 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 MGM Resorts International on the closing date.
BofA Merrill Lynch, J.P. Morgan, Morgan Stanley and Evercore ISI acted as joint lead book-running managers in the IPO. Barclays, Citigroup and Deutsche Bank Securities acted as book-running managers in the IPO. BNP Paribas, Fifth Third Securities, SMBC Nikko, SunTrust Robinson Humphrey, Credit Agricole CIB, Union Gaming, Scotiabank and Oppenheimer & Co. Inc. acted as co-managers in the IPO.