MGM China confirms new HK$23.4bn credit facility
MGM China Holdings has secured a new revolving credit facility worth up to HK$23.4bn (US$2.99bn), intended to refinance existing loans and provide support for working capital and general corporate purposes.
Key points:
– Facility carries a variable interest rate based on HIBOR plus a margin
– Five-year maturity term agreed with participating lenders
– Repayment clause triggered if majority shareholding changes
According to a statement filed with the Hong Kong Stock Exchange, the agreement was entered into on 15 April 2025 between the company and a group of lenders. The facility carries a floating interest rate benchmarked to the Hong Kong Interbank Offered Rate (HIBOR), with an additional margin ranging between 1.625% and 2.75%, subject to MGM China’s leverage ratio.
The funding arrangement has a maturity of 60 months from the date of the agreement. Funds drawn under the facility will be used to repay MGM China’s existing credit facilities, which will be fully settled and cancelled with effect from 22 April 2025.
A key condition of the agreement is a change-of-control clause. If MGM Resorts International ceases to directly or indirectly hold more than 50% of the issued share capital of MGM China, the outstanding amount under the credit facility must be repaid in full.
The company stated that the availability of funds under the new agreement is subject to the satisfaction of customary conditions. MGM China also confirmed that it would continue to disclose relevant information in its interim and annual reports, as required under the Listing Rules.
Investors and shareholders have been advised to exercise caution and consider the contents of this disclosure before making any trading decisions.
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