MGM Resorts International said its MGM China unit has completed the refinancing of its Hong Kong-dollar denominated senior credit facilities, upping the size of funds available and providing the company with the flexibility to develop its MGM Cotai property.
The restated accord consists of a term loan equivalent to U$1.55 billion, up from the previous $550 million term loan and a $1.45 billion revolving credit facility. The maturities have also been extended for 18 months to April 29th, 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 company will pay interest at a floating rate over the Hong Kong Interbank Offered Rate. For the first six months that rate has been set at 1.75 percent per year. Thereafter the rate, which will range from 1.375 percent to 2.5 percent, will depend on the company’s leverage ratio.
Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.
ASIA GAMING BRIEF
PO Box 1139, Macau SAR
Tel: +853 2871 7267
Fax: +853 2871 7264