Investors Update: MGM Growth Properties LLC (NYSE: MGP)

MGM Growth Properties LLC (NYSE: MGP) spotted trading -1.93% off 52-week high price. On the other end, the stock has been noted 22.48% away from the low price over the last 52-weeks. The stock changed 1.44% to recent value of $31. The stock transacted 1719375 shares during most recent day however it has an average volume of 770.51K shares. The company has 261.18M of outstanding shares and 261.18M shares were floated in the market.  

MGM Growth Properties LLC (NYSE: MGP) declared that it has closed its previously announced underwritten follow-on public offering of 19,550,000 Class A shares (the “shares”), which includes 2,550,000 shares sold pursuant to the exercise in full by the underwriters of their over-allotment option, at a public offering price of $29.25 per share for expected net proceeds of approximately $548.3 million.  The 17,000,000 Class A shares prior to the exercise of the over-allotment option was increased from the originally announced offering size of 14,500,000 Class A shares.

The Company plans to use the net proceeds of the offering in part to repay revolver draws, with the balance for general corporate purposes, including the acquisition of real property associated with Empire City Casino’s race track and casino (the “Empire City Transaction”) from MGM Resorts International (“MGM”) and payment of consideration to MGM for renovations undertaken by MGM regarding the Park MGM and NoMad Las Vegas property (the “Park MGM Lease Transaction”).  Any proceeds received in connection with the exercise by the underwriters of their overallotment option to purchase additional shares will be used for general corporate purposes.

The Empire City Transaction closed on January 29, 2019 and the Park MGM Lease Transaction is expected to close in the first quarter of 2019, subject to regulatory approvals and other customary closing conditions.  The offering was not conditioned upon the completion of the Park MGM Lease Transaction or any other transaction.

 Its earnings per share (EPS) expected to touch remained 30.20% for this year while earning per share for the next 5-years is expected to reach at 22.94%. MGP has an operating margin of 45.70% while its profit margin remained 6.10% for the last 12 months. 

 The price moved ahead of 8.02% from the mean of 20 days, 10.37% from mean of 50 days SMA and performed 6.77% from mean of 200 days price. Company’s performance for the week was 4.69%, 17.38% for month and YTD performance remained 17.38%.

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