MGM China secures US$3.02bn revolving credit facility
The company will refinance existing credit facilities.
Macau.- MGM China has announced that it has entered into a revolving credit facility with a group of lenders. The arrangement provides the company with a facility for HK$23.40bn (US$3.02bn) with a final maturity date of 60 Months. The facility will take effect on April 22, the date of the first utilisation.
Interest will have a fluctuating rate based on the Hong Kong Interbank Offered Rate (HIBOR) plus a margin in the range of 1.625 per cent to 2.75 per cent to be determined by the company’s leverage ratio.
The company said it plans to use the proceeds to refinance existing revolving credit facilities and for general corporate and working capital purposes. The first revolving credit facility was finalised in August 2019 for HK$9.75bn. Later extensions pushed its maturity date to May 15, 2026. A second facility was agreed upon in May 2020 for a starting amount of HK$2.34bn, which increased to HK$3.12bn. Its maturity date was extended to May 15, 2026.
For full-year 2024, MGM China posted net revenue of HK$31.4bn (US$3.92bn), up 27.2 per cent from the HK$24.7bn (US$3.2bn) posted in 2023, and up 138 per cent when compared to 2019, before the Covid-19 pandemic.
The casino operator recorded adjusted EBITDA of HK$9.06bn (US$1.13bn), up 25.2 per cent in year-on-year terms. MGM China had a market share of 15.8 per cent, up from 15.2 per cent in 2023 and 9.5 per cent in 2019. MGM COTAI’s market share was 9.3 per cent and MGM Macau’s was 6.5 per cent.
Last March, MGM China cancelled an unused US$750m credit facility from its majority shareholder, MGM Resorts International. The facility had been established in November 2022.
