June 19, 2024 2 min read

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MGM China Confirms International Notes Offering for Professional Investors

Issuing notes to professional investors internationally, the company anticipates repaying a portion of the amounts outstanding under its revolving credit facility

The leading entertainment and casino operator that owns a luxury resort in Macau, MGM China Holdings Ltd., confirmed its plans to issue notes to professional investors internationally. The announcement came as a part of a Hong Kong Stock Exchange filing released earlier this week.

In its filing, MGM China revealed that by issuing notes to professional investors internationally, it aims to fund part of its existing revolving credit facility. Per the filing, the company issued an aggregate principal amount of $500 million in notes. However, MGM China wrote that the notes “will not be offered to the public in Hong Kong.”

In the recent filing with the Hong Kong Stock Exchange, the leading gaming and entertainment company said that it expects net proceeds from the offering that would be approximately HK$3.859.3 million. This represents a sum that is approximately $493.1 million, and it comes after the deduction discounts for the purchasers as well as other expenses the company pays.

MGM China explained: “Subject to compliance with applicable laws and regulations, the Company intends to use the net proceeds from the offering of the Notes to repay a portion of the amounts outstanding under the Revolving Credit Facility.” Additionally, the company said that it will be “permitted to reborrow such amounts under the Revolving Credit Facility.”

The Company Retains Growth Focus

The recent filing reveals that the annual interest rate will be 7.125%. It will be payable semi-annually on June 26 and December 26. With the first interest payment date set for December 26, 2024, the maturity date for the notes is June 26, 2031.

Earlier this year, MGM’s management discussed its long-term strategy, highlighting plans and initiatives through the rest of the year and beyond. At the time, Kenneth Feng, MGM China’s executive director and president, spoke about the company’s deep understanding of the market in Macau.

He praised MGM China’s efforts to innovation and dedication to providing its customers with exceptional experiences. Feng also encouraged stakeholders to visit the company’s Macau property.

Journalist

Jerome is a welcome new addition to the Gambling News team, bringing years of journalistic experience within the iGaming sector. His interest in the industry begun after he graduated from college where he played in regular local poker tournaments which eventually lead to exposure towards the growing popularity of online poker and casino rooms. Jerome now puts all the knowledge he's accrued to fuel his passion for journalism, providing our team with the latest scoops online.

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