The loan aims to meet future working capital and funding needs.<\/p>\n\n\n\n\n\n\n\n
Macau.- MGM China <\/strong>has announced through a company filing that it has entered into a loan agreement with MGM Resorts International (MRI)<\/strong>, under which MRI will make available a subordinated revolving loan facility in an amount of up to US$750m<\/strong>. It said the agreement highlights MRI and MGM China’s confidence in Macau’s long-term growth potential<\/strong>. <\/p>\n\n\n\n It said the availability of the facility bolsters MGM China’s already strong financial position to meet future working capital and other funding needs. The term of the revolving loan facility is 24 months. The interest rate on funded amounts will be the greater of 4 per cent per annum and the prevailing market rate.<\/p>\n\n\n\n MRI beneficially owns approximately 56 per cent of the issued share capital of MGM China. In June, MGM China extended its branding agreement with MRI<\/a>, under which it must pay MGM Branding<\/strong> a monthly royalty based on 1.75 per cent of the company\u2019s consolidated monthly revenue. This is in exchange for MGM China\u2019s use of certain trademarks owned by MGM Resorts International and its affiliates.<\/p>\n\n\n\n MGM China recorded revenue of approximately HK$687m (US$87m) <\/strong>for the third quarter of the year<\/a>, down 37.5 per cent when compared with HK$1.1bn in the previous quarter. Revenue for the casino division fell by 72 per cent year-on-year from US$252m to US$70m. As of September 30, 2022, the group had total liquidity of approximately HK$9.9bn, comprising cash and cash equivalent and an undrawn revolver.<\/p>\n\n\n\n