MGM Growth Properties (MGP) plans to sell 30 million shares, with some of the capital going towards a joint venture with MGM Resorts.
MGP is a gaming real-estate investment trust that has been separated from MGM for more than three years.
The company will sell its shares at a public offering price of $31.25 per share.
MGP intends to sell 18 million shares directly to underwriters J.P.Morgan Securities, Morgan
Stanley, and BofA Securities for $540.8m.
As part of the offering, MGP agreed to forward sale agreements with each of the underwriters.
The underwriters can also utilize their overallotment option to purchase up to 4.5 million of additional shares per company.
MGP originally offered to sell 24 million shares, but increased the number by six million.
The company’s stock fell 1.1% in after-hours trading Tuesday evening following the original
announcement of the sale.
Net proceeds of the sale of shares will go towards repaying borrowings outstanding and
positioning MGP to fund a potential joint venture with MGM Resorts.
MGM has reportedly been looking to sell MGM Grand and Mandalay Bay in recent months.
Earlier this week, MGM completed a sale of the Bellagio to Blackstone Group for $4.25bn.
