Deal is largest IPO of 2016 and first REIT IPO formed through a portfolio of premier gaming assets
In a noteworthy three-part capital markets transaction associated with one of the country’s leading hospitality brands, Milbank, Tweed, Hadley & McCloy LLP has advised MGM Growth Properties LLC (NYSE: MGP) in its successful initial public offering as a real estate investment trust, along with simultaneous debt offerings.
Milbank advised MGP on the IPO, which raised approximately $1.2 billion, the private offering of $1.05 billion in 5.625% senior notes due May 2024 and the $2.750 billion senior secured credit facilities. The largest IPO in the US so far in 2016, it is also the first REIT IPO to involve premier gaming properties and a unique transaction in terms of the resulting ownership, governance, and tax structure of the new entity.
Milbank Securities partner Rod Miller led the team advising MGP in equity and debt offerings with associates Sam Badawi, Theodore Hart and Will Reiter. 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.
In addition, Milbank Leveraged Finance partner Lauren Hanrahan, together with associates Brett Pallin and Gabrielle Paolini, acted as counsel to MGP with respect to its new credit facilities.
About Milbank
Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm that provides innovative legal services to clients around the world. Founded in New York 150 years ago, Milbank has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Seoul, Singapore, Tokyo and Washington, DC.
Milbank’s lawyers collaborate across practices and offices to help the world’s leading commercial, financial and industrial enterprises, as well as institutions, individuals and governments, achieve their strategic objectives.
