MGM China obtains HKD2.34 billion revolving credit facility

A new HKD2.34 billion revolving credit facility was granted to casino operator MGM China Holdings Ltd. This also includes “an increase option” which allows the gaming operator to increase the credit amount up to HKD3.9 billion.
The income of the revolving credit facility will be used for the group’s ongoing working capital needs and its general corporate purposes.
The company told the Hong Kong Stock Exchange in a filing that the credit facility has a final maturity date of May 15, 2024, GGR Asia reported.
The increase option is subject to “certain conditions” which the gaming operator did not reveal any details about.
According to the filing, the revolving credit facility’s interest at a fluctuating rate per annum will be based on the HIBOR (Hong Kong Interbank Offered Rate), along with a margin in the range of 1.625% to 2.75%, which will be determined by the group’s leverage ratio.
“The revolving credit facility will be available for drawing from the date of the facility agreement to and including the date falling one month prior to the final maturity date (subject to satisfaction of conditions precedent, including evidence that [MGM China’s] existing HKD9.75 billion senior unsecured revolving credit facility has been fully drawn),” the gaming operator stated.
MGM China’s net revenue in the first quarter of this year tumbled 63% year-on-year to $271.9 million, due to Covid-19 and travel restrictions which prevented the city’s top source market from traveling to Macau.
Analysts at J.P. Morgan Securities (Asia Pacific) previously said that MGM China has enough liquidity to survive for “over a year” under the present conditions. LV

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