IPO Watch: MGM Growth Properties

(RTTNews) - MGM Growth Properties LLC, the real estate unit of casino operator MGM Resorts International (MGM), has filed for an initial public offering of its common stock.

In a filing with the Securities and Exchange Commission, the company said it expects to raise $100 million from the offering. It intends to list the Class A shares under the ticker symbol "MGP" on the New York Stock Exchange.

BofA Merrill Lynch, J.P. Morgan, Morgan Stanley, Evercore ISI, Barclays, Citigroup and Deutsche Bank Securities are the joint book runners on the deal. Pricing terms of the deal were not disclosed.

Following the offering, MGM Growth Properties or MGP expects to engage in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts.

In connection with this offering, MGP will acquire from MGM nine premier destination resorts in Las Vegas and elsewhere across the U.S., in addition to one dining and entertainment complex expected to open in April 2016.

MGP's initial portfolio will include seven properties on the Las Vegas Strip. Outside of Las Vegas, it will own three casino resort properties - MGM Grand Detroit in Detroit, and the Michigan and Beau Rivage and Gold Strike Tunica, both in Mississippi.

As of December 31, 2015, these properties collectively comprised 24,466 hotel rooms, about 2.5 million convention square footage, over 100 retail outlets, over 200 food and beverage outlets, and about 20 entertainment venues.

MGP will initially generate revenue by leasing all ten of its assets to a subsidiary of MGM Resorts under a long-term triple-net master lease agreement.

MGM Resorts will maintain control of the REIT. The IPO filing comes after the restructuring related to the trust was approved last week by Nevada state's gaming regulators.