MGM Resorts International subsidiary MGM China Holdings announces agreement for amendment and extension of credit facility

LAS VEGAS - MGM Resorts International (NYSE: MGM) announced that MGM China Holdings Limited, a 51%-owned subsidiary, has agreed in principle with its lenders to amend and restate its Hong Kong Dollar denominated senior credit facilities agreement expanding the facility by $1 billion and extending the maturity by 18 months. The amended and extended facilities will consist of a US$1.55 billion equivalent term loan, an increase from the previous $550 million term loan and US$1.45 billion equivalent revolving credit facility. The facilities will amend and restate the existing US$2 billion credit facilities of MGM China Holdings Limited, in their entirety, and extend the term of those facilities to April, 2019.

MGM China President and CEO Grant Bowie said: "We are very pleased with the support from our lenders which allows us to upsize the credit facility to US$3 billion. This financing will be used for general corporate purposes and will provide our Company the financial flexibility to continue to invest in MGM Macau and develop MGM Cotai."

The amended facilities will bear interest at a fluctuating rate per annum based on HIBOR plus a margin, initially set for a six month period at 1.75% per annum, but thereafter the margin (in the range of 1.375% to 2.50% per annum) will be determined by the company's leverage ratio.

The consent is subject to the execution of a formal amended and restated facilities agreement, among the Lenders, the Company and MGM Grand Paradise and is conditioned upon the satisfaction (or waiver) of all conditions precedent to its effectiveness, including, but not limited to, receipt of any government or regulatory approval required in connection with the transaction. There is no assurance as to whether and when binding agreements in respect of the proposed facilities will be finalized.

The proceeds of the amended and restated facilities will be used for the refinancing of the facilities made available under the existing credit facilities of MGM Grand Paradise, S.A. and any proper corporate purposes of the Company and its subsidiaries including the development of the MGM Cotai.

sourced:traveldailynews.asia