LAS VEGAS, April 7, 2015 /PRNewswire/ -- MGM Resorts
International (NYSE: MGM) today announced that MGM China Holdings
Limited, a 51%-owned subsidiary, has agreed in principle with its
lenders to amend and restate its Hong Kong Dollar denominated
senior credit facilities agreement expanding the facility by
$1 billion and extending the maturity
by 18 months. The amended and extended facilities will
consist of a US$1.55 billion
equivalent term loan, an increase from the previous $550 million term loan and US$1.45 billion equivalent revolving credit
facility. The facilities will amend and restate the existing
US$2 billion credit facilities of MGM
China Holdings Limited, in their entirety, and extend the term of
those facilities to April, 2019.
MGM China President and CEO Grant
Bowie said: "We are very pleased with the support from our
lenders which allows us to upsize the credit facility to
US$3 billion. This financing
will be used for general corporate purposes and will provide our
Company the financial flexibility to continue to invest in MGM
Macau and develop MGM Cotai."
The amended facilities will bear interest at a fluctuating rate
per annum based on HIBOR plus a margin, initially set for a six
month period at 1.75% per annum, but thereafter the margin (in the
range of 1.375% to 2.50% per annum) will be determined by the
company's leverage ratio.
The consent is subject to the execution of a formal amended and
restated facilities agreement, among the Lenders, the Company and
MGM Grand Paradise and is conditioned upon the satisfaction (or
waiver) of all conditions precedent to its effectiveness,
including, but not limited to, receipt of any government or
regulatory approval required in connection with the transaction.
There is no assurance as to whether and when binding agreements in
respect of the proposed facilities will be finalized.
The proceeds of the amended and restated facilities will be used
for the refinancing of the facilities made available under the
existing credit facilities of MGM Grand Paradise, S.A. and any
proper corporate purposes of the Company and its subsidiaries
including the development of the MGM Cotai.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is one of the world's
leading global hospitality companies, operating destination resort
brands including Bellagio, MGM Grand, Mandalay Bay and The
Mirage. The Company also owns 51 percent of MGM China
Holdings Limited, which owns the MGM Macau resort and casino and is
in the process of developing a gaming resort in Cotai, and 50
percent of CityCenter in Las
Vegas, which features ARIA resort and casino. For more
information about the Company please visit www.mgmresorts.com.
About MGM China Holdings Limited
MGM China is one of the leading casino gaming resort developers,
owners and operators in the greater China region. The Company is the holding
company of MGM Grand Paradise, S.A., which holds one of the six
gaming concessions/subconcessions to operate casino games in
Macau. MGM Grand Paradise
currently owns and operates MGM Macau, the award-winning, premium
integrated casino and luxury resort located on the Macau Peninsula and is in the process of
developing a gaming resort in Cotai. It is traded on the Main Board
of the Stock Exchange of Hong Kong
under stock code 2282 and is a subsidiary of MGM Resorts
International (NYSE: MGM).
Statements in this release which are not historical facts are
"forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act and other related laws that
involve risks and/or uncertainties, including risks and/or
uncertainties as described in the Company's public filings with the
Securities and Exchange Commission. The Company has based
those forward-looking statements on management's current
expectations and assumptions and not on historical facts.
Examples of these statements include, but are not limited to,
statements regarding the Company's expectations to enter into a
formal amended and restated facilities agreement and the expected
terms of such facility. These forward-looking statements
involve a number of risks and uncertainties. Among the
important factors that could cause actual results to differ
materially from those indicated in such forward-looking statements
include market conditions for corporate debt generally, for the
securities of gaming, hospitality and entertainment companies and
for the Company's indebtedness in particular. In providing
forward-looking statements, the Company is not undertaking any duty
or obligation to update these statements publicly as a result of
new information, future events or otherwise except as required by
law.
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SOURCE MGM Resorts International