Proceeds from the amended and restated credit agreement will be used to refinance the existing facilities and for general corporate purposes of MGM China and its subsidiaries, including the development of MGM Cotai.
LAS VEGAS – MGM Resorts International announced that MGM China Holdings Limited, a 51%-owned subsidiary, has completed its previously announced refinancing transaction of its Hong Kong Dollar denominated senior credit facilities agreement. The amended and restated credit agreement is comprised of a US$1.55 billion equivalent term loan, an increase from the previous $550 million term loan, and US$1.45 billion equivalent revolving credit facility. The amended and restated credit agreement extends the term of the original facilities for an eighteen month period ending April 29, 2019.
“We are very pleased with the support from our lenders which allowed us to upsize the credit facility to US$3 billion,” said Grant Bowie, CEO and Executive Director of MGM China. “This financing will provide our Company the financial flexibility to invest in MGM Macau and develop our second property, MGM Cotai, in the world’s largest gaming market.”
The amended and restated credit agreement will bear interest at a fluctuating rate per annum based on HIBOR plus a margin, initially set for a six month period at 1.75% per annum, but thereafter the margin (in the range of 1.375% to 2.50% per annum) will be determined by MGM China’s leverage ratio.
Proceeds from the amended and restated credit agreement will be used to refinance the existing facilities and for general corporate purposes of MGM China and its subsidiaries, including the development of MGM Cotai.
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