MGM Macau confirms new senior secured credit facility

MGM Grand Paradise yesterday confirmed that it has entered into a new senior secured credit facility to the amount of HK$7.41 billion (US$950 million), as reported by Macau Business on July 30. The initial loans under the facility refinanced the company’s existing senior secured credit facilities and will provide additional liquidity. The company is a 50/50 joint venture of MGM Resorts International and Pansy Ho Chiu King. “We are gratified by the overwhelming support from our financial partners,” said Jim Murren, MGM Resorts International’s chairman and chief executive officer who also serves as the chairman of MGM’s board of directors. “We have made significant progress in building our revenues at MGM Macau, which has resulted in a positive impact on our cashflows. We view the significant investor demand on this transaction as validation of our progress,” Mr. Murren stressed. Ms Ho, managing director of the company, said: “Most notably, the new credit facility demonstrates the support of both the local banking community and the international financial market. This support enabled us to upsize the credit facility and provides us with a strong long-term capital structure. “Our goal has been to continue to develop the highest quality resorts in the Macau marketplace. We will continue to execute our growth strategy while further enhancing Macau as a world-class destination,” Ms. Ho noted. The new credit facility consist of a HK$4.290 billion (US$550 million) term loan and a HK$3.120 billion (US$400 million) revolving credit facility, which will mature in July, 2015.