MGM Growth Properties (MGP) Prices 19M Class A Share Common Offering at $32.15/Sh

March 11, 2021 5:57 AM EST

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MGM Growth Properties LLC (NYSE: MGP) (the "Company") today announced that it has priced its previously announced underwritten public offering of 19,000,000 Class A shares (the "shares") at a public offering price of $32.15 per share, for expected proceeds of $587.9 million, net of the underwriters' discount. As part of the offering (the "Offering"), the Company also granted the underwriters a 30-day over-allotment option to purchase up to an additional 2,850,000 shares from the Company. If the underwriters exercise their over-allotment option to purchase additional shares in full, the expected proceeds of the offering, net of the underwriters' discount, would be approximately $676.1 million. The offering is expected to close on March 15, 2021, subject to customary closing conditions.

On March 4, 2021, the Company received a notice of redemption from certain subsidiaries of MGM Resorts International ("MGM") covering 37.1 million operating partnership units of MGM Growth Properties Operating Partnership LP, a consolidated subsidiary of the Company, held by such MGM subsidiaries. The Company plans to use the proceeds of the Offering, net of the underwriters' discount, to redeem 21.8 million of such operating partnership units (inclusive of the underwriter's over-allotment option) to partially satisfy its obligations under the redemption notice, with the remaining 15.3 million operating partnership units to be redeemed using cash on hand.

BofA Securities, J.P. Morgan, Barclays and Scotiabank are acting as joint lead book-running managers for the Offering. BNP PARIBAS, Citizens Capital Markets, Credit Agricole CIB, Fifth Third Securities and SMBC Nikko are acting as joint book-running managers for the Offering. Deutsche Bank Securities, Evercore ISI, Morgan Stanley, Truist Securities and UBS Investment Bank are acting as senior co-managers for the Offering. KeyBanc Capital Markets, Ladenburg Thalmann, Raymond James and Union Gaming are acting as co-managers for the Offering.

The offering of these securities is being made pursuant to an effective shelf registration statement previously filed by the Company with the Securities and Exchange Commission ("SEC"). A prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC's website.



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