New MGM subsidiary files for initial public offering
Mar. 23, 2016
LAS VEGAS (AP) — An MGM Resorts International real estate subsidiary has filed for an initial public offering.
MGM Growth Properties LLC shares will be traded on the New York Stock Exchange, Vegas Inc. reported (http://bit.ly/1XN817s ). The subsidiary's Securities and Exchange Commission filing says it expects to raise $100 million in proposed share sales.
It will own Mandalay Bay, Mirage, New York-New York, Monte Carlo, Luxor, Excalibur and the Park as well as MGM Grand Detroit, Beau Rivage in Biloxi, Mississippi, and Gold Strike in Tunica, Mississippi.
MGM Resorts plans to lease back the properties and own most of the new subsidiary. The filing says MGM Growth Properties will be organized as a real estate investment trust.
"In addition to the gaming and gaming-related properties we may acquire from MGM from time to time in the future, we will also actively seek to identify additional entertainment and gaming-related properties for potential acquisition from non-MGM entities," the SEC filing said.
The initial public offering was filed after state gaming regulators gave the final approval last week for restructuring related to the trust.
MGM Resorts plans to start off paying $550 million in rent annually for its real estate investment trust lease.
Information from: Las Vegas Sun, http://www.lasvegassun.com