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Oct. 23, 2012 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) today announced that MGM China Holdings Limited, a 51%-owned subsidiary, has entered into an amended and restated Hong-Kong-Dollar-denominated senior credit facilities agreement in respect of facilities in an aggregate principal amount equivalent to
US$2 billion. The facilities consist of a
US$550 million equivalent term loan and
US$1.45 billion equivalent revolving credit facility. The facilities amend and restate the existing
US$950 million credit facilities of MGM Grand Paradise, S.A., in their entirety, and extend the term of those facilities for a five year period to
October 29, 2017.
MGM China President and CEO
Grant Bowie said: "We are very pleased with the overwhelming support from our financial partners which allowed us to upsize the credit facility to
US$2 billion. This financing along with our strong balance sheet and free cash flow allows MGM China to grow its business and maximize shareholder value."
Under the amended and restated facilities agreement, MGM China has become a joint and several co-borrower with MGM Grand Paradise, S.A. The material subsidiaries of MGM China continue to guarantee the facilities, and MGM China, MGM Grand Paradise, S.A. and their guarantor subsidiaries have granted security on substantially all of their assets to secure the amended facilities.
The facilities will bear interest at a fluctuating rate per annum based on HIBOR plus a margin, initially set for a six month period at 2.50% per annum, but thereafter the margin (in the range of 1.75% to 2.50%) will be determined by MGM China's leverage ratio.
The proceeds of the amended and restated facilities will be used to refinance the existing credit facilities of MGM Grand Paradise, S.A., future development opportunities including Cotai and for general corporate purposes of MGM China and its subsidiaries.