MGM Resorts International is set to receive another US$700 million cash injection after revealing that real estate investment trust MGM Growth Properties LLC (MGP) has redeemed 23.5 million operating partnership units under an agreement inked earlier this year.
The redemption represents the second such transaction in the space of six months with MGP having redeemed an initial US$700 million of units in May, and sees MGM’s stake in its REIT fall from 56.7% to 53%. MGM said it intends to use the proceeds, which boost the company’s liquidity to US$5.9 billion, for general corporate purposes.
“Today’s announcement reflects our continued focus on enhancing our balance sheet to strengthen our financial flexibility,” said MGM Resorts CEO and President, Bill Hornbuckle.
“As the pandemic continues to impact operations at our properties across the US, we believe the opportunistic exercise of our redemption right as well as our recent senior notes offering allow us to continue pursuing our strategic goals while navigating the crisis.”
MGP owns an extensive portfolio of properties across the United States, including MGM Grand, Mandalay Bay and Luxor on the Las Vegas Strip – all of which are operated by MGM Resorts – plus the Borgata in Atlantic City and MGM National Harbor in Washington DC among many others.
MGM Resorts noted in its announcement that it “continues to hold significant real estate assets, including its ownership of MGM Springfield, its 50% interest in CityCenter in Las Vegas and its 56% interest in MGM China.”
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