CHARLOTTE, N.C. - Banc of America Corp.'s securities unit on Monday priced its largest lead-managed high yield transaction to date, a $710 million of senior subordinated notes at a yield of 10% to help MGM Grand to fund its $6.4 billion merger with Mirage Resorts, Inc.
Deutsche Bank Alex Brown was a joint-book-running manager on the transaction. The offering was increased by more than 40% in size from an original amount of $500 million, representing the largest upsizing of a transaction in the high yield market this year.
The bank said the deal was oversubscribed with broad distribution in the high yield and cross-over markets. MGM Grand is a leading operator of first class hotel/casino resorts.