{"id":6829,"date":"2020-05-28T08:55:24","date_gmt":"2020-05-28T08:55:24","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=6829"},"modified":"2026-04-24T04:53:39","modified_gmt":"2026-04-24T07:53:39","slug":"mgm-china-credit-casino","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/mgm-china-credit-casino","title":{"rendered":"MGM China secures US$301m revolving credit facility"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Funds will be used for working capital needs and general corporate purposes.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p class=\"wp-block-paragraph\">Macau.- Casino operator <em><strong>MGM China Holdings Ltd <\/strong><\/em>has been granted revolving credit of HKD2.34billion (US$301million).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to a filing to the Hong Kong Stock Exchange, the company could take an &#8220;increase option&#8221; to access credit of up to HKD3.9 billion,&nbsp;subject to&nbsp;\u201ccertain conditions\u201d. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The revolving credit will bear interest at a fluctuating rate per annum based on HIBOR (Hong Kong Interbank Offered Rate),&nbsp;plus a margin in the range of 1.625&nbsp;per cent&nbsp;to 2.75&nbsp;per cent. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The latter margin&nbsp;\u201cwill be determined by the&nbsp;company\u2019s leverage ratio,\u201d MGM China said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;The revolving credit facility will be available for drawing from the date of the facility agreement to and including the date falling one month prior to the final maturity date (subject to satisfaction of conditions precedent, including evidence that&nbsp;[MGM China\u2019s]&nbsp;existing HKD9.75billion senior unsecured revolving credit facility has been fully drawn),&#8221; the company said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It also explained that the&nbsp;new&nbsp;revolving credit facility&nbsp;would have to be prepaid if U.S.-based casino operator MGM Resorts International &#8220;ceases to be the legal and beneficial owner directly or indirectly of more than 50&nbsp;per cent&nbsp;of the issued share capital&#8221; of MGM China.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the statement, the proceeds of the revolving credit facility will be used for working capital needs and general corporate purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It was announced in April&nbsp;that MGM China\u2019s first-quarter net revenues were reached US$271.9million,&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/focusgn.com\/asia-pacific\/mgm-china-revenues-gaming\" target=\"_blank\"><em><strong>down 63 per cent<\/strong><\/em><\/a>&nbsp;from the prior-year quarter.  <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;negative&nbsp;financial result was attributed to the impact of the Covid-19 pandemic. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Funds will be used for working capital needs and general corporate purposes.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"MGM China Holdings Ltd has secured a HKD2.34 billion revolving credit facility, with an option to increase to HKD3.9 billion, designated for working capital and general corporate purposes. The facility's interest margin is tied to the company's leverage ratio, and it includes a prepayment clause contingent on MGM Resorts International maintaining majority ownership. This financing comes as MGM China reported a 63% decline in Q1 net revenues, primarily due to the COVID-19 pandemic's operational impact.","focusai_entities":"MGM China Holdings Ltd, Hong Kong Stock Exchange, MGM Resorts International","focusai_location":"Macau, Hong Kong, U.S.","focusai_target_profile":"ceo_executive (0.95), regulator (0.75), compliance_legal (0.7), operator_casino (0.9), investor_analyst (0.98), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Leverage Ratio Impact","query":"How might MGM China's projected leverage ratio trajectory influence the effective interest cost of this revolving credit facility, and what are the implications for future debt servicing capacity?"},{"label":"Ownership Clause Risk","query":"What specific scenarios could trigger the prepayment clause related to MGM Resorts International's ownership stake, and what are the potential financial and strategic ramifications for MGM China?"}],"footnotes":""},"categories":[160,157,16338,163,158],"tags":[257],"class_list":["post-6829","post","type-post","status-publish","format-standard","hentry","category-asia-pacific","category-business-news","category-east-asia-news","category-finance-news","category-slider-home","tag-macau"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/6829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=6829"}],"version-history":[{"count":4,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/6829\/revisions"}],"predecessor-version":[{"id":777008745,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/6829\/revisions\/777008745"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=6829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=6829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=6829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}