MGM China bags $3 billion revolving credit facility
Macau casino operator MGM China Holdings has announced it has secured a revolving credit facility worth HKD23.40 billion (roughly $3.02 billion) with a group of lenders. The agreement kicked in on 15 April 2025, and the maturity date is 60 months from the date.
Details of the facility
According to a filing on the Hong Kong Stock Exchange (HKEX), the facility takes effect on 22 April, the date of the first utilisation. The credit facility will bear interest at a fluctuating rate per annum based on the Hong Kong Interbank Offered Rate (HIBOR). In addition, a margin added to HIBOR ranges from 1.625 percent to 2.75 percent. This is to be decided later by “the company’s leverage ratio.” The 2025 deal also includes an “accordion option,” which is a finance term that is defined as the possibility for MGM China to increase the size of the credit line later on.
MGM China’s statement said, “The proceeds of the revolving credit facility will be used to refinance the existing revolving credit facility and second revolving credit facility… for ongoing working capital needs and general corporate purposes of the group.”
The first of the two previous facilities dates back to August 2019, with a total of HKD9.75 billion. After amendments and extensions, it was due to mature by May 15, 2026. “The increase option under the second revolving credit facility has been fully exercised to date,” noted Tuesday’s update. The document also stated, “With effect from April 22, 2025, the date of the first utilisation of the 2025 revolving credit facility, the amounts due under the existing credit facilities will be repaid in full and the total commitments thereof will be cancelled in full.”
Previous reports of $2 billion loan
In February, Bloomberg reported that the casino operator was in talks with over a dozen banks for a loan, citing people familiar with the matter. However, the principal loan amount, according to the media outlet, was $2 billion. This loan is the company’s first syndicated loan since the Covid-19 pandemic, according to the media outlet’s data. MGM China has been on a remarkable growth trajectory in the past few years and was among the fastest-growing gaming operators in Macau. The operator posted strong financial results for 2024, driven by strong casino performance and Macau’s ongoing recovery from pandemic-era restrictions.
