Winning Gamble? MGM Forms REIT, Takes on $4B in Debt
MGM CEO Jim Murren said the company had kicked around half-backed ideas before taking the REIT route, calling it "virtually friction-less." The new REIT, named MGM Growth Partners, assumes about $4B of debt. The transaction is set to close in Q1 '16.
MGM Resorts joins companies like Penn National Gaming and Caesars Entertainment in creating the REIT. And the gamble may have paid off already. Shortly after the announcement, MGM's shares rose as much as 7.4% while boosting market cap by around $500M.