Operator News
China – MGM China secures US$302m of revolving credit
By Phil - 27 May 2020
MGM China has agreed to new finance deals with with its lenders giving it a revolving credit facility of US$302m with an option to increase to US$503m on certain conditions.
MGM said: “On May 26, 2020, the Company entered into agreements with certain lenders pursuant to which the lenders agreed to make available to the Company a revolving credit facility in an aggregate amount of HK$2.34bn with a final maturity date on May 15, 2024, with an increase option pursuant to which the Company may increase the amount of facility to up to HK$3.9bn subject to certain conditions. The agreements are subject to customary documentary conditions and 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 the existing HK$9.75bn senior unsecured revolving credit facility has been fully drawn). The revolving credit facility will bear interest at a fluctuating rate per annum based on HIBOR plus a margin (in the range of 1.625 per cent to 2.75 per cent), which will be determined by the Company’s leverage ratio. The proceeds of the revolving credit facility will be used for ongoing working capital needs and general corporate purposes of the Group.”
