An unnamed group of lenders has provided MGM China Holdings with a refinancing deal to the tune of $3.02bn. The company, which operates in the Asian gambling hub of Macau, says it will use the cash for “general corporate purposes.”
the contract is void if MGM’s ownership drops below 50%
MGM China is owned by MGM Resorts International, a US-based company, and the investors supposedly want to keep it that way. A clause in the refinancing deal stipulates that the contract is void if MGM’s ownership drops below 50%.
The deal will come into force on April 22 and will mature in 60 months.
The company had a similar revolving credit facility in August 2019. That one was worth around $1.25bn. It secured a second deal for around $301.7m, increasing that to $402m at a later date. The maturity date for this deal was set for May 2026.
Experts have warned about the potential impact of President Donald Trump’s tariffs on the Macau gambling sector. China has hit back with tariffs of its own, and insiders believe this will have an “impact on the export of integrated tourism services.”
