MGM Resorts International: 2Q26 OK; Diller/Go-Private Pending? Remain UW

研报英文原文证据摘录

MGM Resorts International: 2Q26 OK; Diller/Go-Private Pending? Remain UW

ity is attractive on a SOTP CZR 4.625s '29 B- *- / B3 *- 94.875 6.42% 213bp

valuation. During the quarter, the company completed the sale of MGM PENNMGM 6.75s6.5s '32'31 BB-B / /B3B1 100.50099.375 6.59%6.63% 221bp228bp

Northfield Park to funds managed by the Clairvest Group for an estimated net CZR (sec) 7s '30 BB- *- / Ba3 *- 100.250 6.82% 269bp

proceeds of ~$420m ($546m gross). Subsequent to quarter-end the company CZRCZR (sec) 6.5s6s '32'32 BB-B- *-*- // B3Ba3*-*- 95.87587.875 7.42%8.56% 301bp410bp

funded $18m of their committed Osaka amount, and we continue to believe as HY Gaming/Leisure Index 6.85% 252bp

JPM HY Index 7.57% 323bp

funding ramps up for Japan (~$2.1bn left) the company will shift capital Notes: Pricing as of 07/30/2026; index pricing as of 07/29/2026

priorities to this vs share buybacks (already feels as such). We would not be

surprised to see MGM tap the High Yield market in the near future in order to

refinance its $400m of 4.625% Sr Unsecured Notes due Sept. 2026 and add

some excess cash for Japan funding. We calculate consolidated proportionate

lease adjusted leverage at 4.8x gross/4.4x net (we calculate domestic only at

5.2x gross/4.8x net).

• Nothing Incremental on Diller/Go-Private (yet?): On June 1, 2026, People,

Inc. announced that it had submitted a non-binding proposal to the MGM

Board to acquire all outstanding shares of MGM that it does not already own

for $48.30/share. Unsurprisingly, management didn’t comment on this last

night during its conference call, other than stating that its Board has formed a

special committee composed of Independent Directors and will evaluate the

proposed transaction with independent outside advisors. We put a decent