Macau casino operator MGM China Holdings Ltd says a US$750-million revolving loan facility made available by its majority owner MGM Resorts International, amid the Covid-19 pandemic, was terminated on Wednesday, as it is “not commercially necessary” now.
The subordinated-loan agreement made in November 2022 had been “to meet the then future working capital and funding needs” of MGM China.
But subsequently MGM China’s revenue “recorded a substantial increase in 2023, which was underpinned by a significant recovery in the markets the company operates in following the easing of Covid-19 travel restrictions to Macau which began in late 2022,” noted a Wednesday filing to the Hong Kong Stock Exchange.
On March 15 MGM China’s board and MGM Resorts “mutually agreed” to the “voluntary cancellation of the whole US$750 million unutilised commitment”.
Moody’s Investors Service Inc said in a Monday memo it had updated the credit outlook for MGM China – which runs the MGM Macau and MGM Cotai resorts in Macau – to ‘stable’ from ‘negative’.
MGM China stated in a February announcement that its 2023 total revenue grew to HKD24.68 billion (US$3.16 billion), an increase of 368.5 percent on 2022, and 108.4 percent of pre-pandemic trading year 2019’s HKD22.77 billion.
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