MGM Resorts International has successfully completed a re-pricing of its approximately $1.75 billion term loan B facility.
The term loan B facility will bear interest at LIBOR plus 2.50%, with a LIBOR floor of 1.00%, a 75 basis point reduction compared to prior rate of LIBOR plus 3.25% with a LIBOR floor of 1.00%. All other principal provisions of the Company's existing credit facility remain unchanged.
"As a result of the re-pricing, the Company expects to save approximately $13 million of annual cash interest payments," said Dan D'Arrigo, MGM Resorts International Executive Vice President, CFO and Treasurer. "We remain focused
on opportunistically reducing our cost of debt while continuing to maximize our free cash flow."
The closing of the re-pricing is scheduled to be completed on May 14, 2013, subject to the execution of definitive documentation and the satisfaction of customary closing conditions.
MGM Resorts International is one of the world's leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage.