MGM China gets $2 billion five-year facilities at Hibor plus 250 bps

By Susanna Moon

Chicago, Oct. 23 - MGM Resorts International said that MGM China Holdings Ltd., a 51%-owned subsidiary, plans to close the equivalent of $2 billion senior credit facilities at Hibor plus 250 basis points on Oct. 29.

The Hibor spread will range from 175 bps to 250 bps, based on leverage.

The company entered into an amended and restated Hong Kong dollar-denominated credit agreement, consisting of a $550 million-equivalent term loan and $1.45 billion-equivalent revolving credit facility.

The facilities amend and restate the existing $950 million credit facilities of MGM Grand Paradise, SA and extend the term of those facilities for five years ending Oct. 29, 2017.

Proceeds will be used to refinance the credit facilities of MGM Grand Paradise, SA, future development opportunities including Cotai and for general corporate purposes of MGM China and its subsidiaries.

"We are very pleased with the overwhelming support from our financial partners which allowed us to upsize the credit facility to $2 billion," MGM China president and chief executive officer Grant Bowie said in a company press release.

"This financing along with our strong balance sheet and free cash flow allows MGM China to grow its business and maximize shareholder value."

Under the amended and restated facilities agreement, MGM China has become a joint and several co-borrower with MGM Grand Paradise, SA. The material subsidiaries of MGM China continue to guarantee the facilities, and MGM China, MGM Grand Paradise and their guarantor subsidiaries have granted security on substantially all of their assets to secure the amended facilities, the release noted.

The company is a Las Vegas-based owner and operator of casino resorts.

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