MGM Resorts Announces HK$23.4 Billion Credit Agreement for MGM China
MGM Resorts International has confirmed that its subsidiary, MGM China Holdings Limited, has entered into a HK$23.4 billion unsecured revolving credit facility. The agreement, finalized on April 15, 2025, is aimed at refinancing existing credit facilities and supporting ongoing corporate operations and working capital requirements.
The new facility, backed by a consortium of lenders, offers variable interest rates based on HIBOR plus a margin ranging from 1.625% to 2.75%, depending on MGM China's leverage ratio. The agreement includes a maturity period of 60 months from the signing date. The initial drawdown is set for April 22, 2025, which will simultaneously trigger the full repayment and cancellation of MGM China’s previous senior unsecured credit commitments.
In addition to financial flexibility, the agreement imposes standard commercial conditions. These include limitations on liens, asset sales, and require compliance with specific leverage and interest coverage ratios. Furthermore, MGM Resorts must maintain a majority ownership stake in MGM China; any drop below 50% would necessitate full prepayment of the facility.
This facility strengthens MGM China's financial position while reinforcing its operational autonomy under MGM Resorts' strategic oversight.
