MGM China has terminated a US$750 million revolving loan facility from its parent company, New York-listed MGM Resorts International (MRI). In a Wednesday filing by order of the board, the concessionaire reasoned that it no longer needed access to the money – none of which had been spent.
MGM China entered into the loan agreement in late 2022, after several years of pandemic restrictions and not long before Macao’s borders reopened. The loan had been intended to meet its future working capital needs.
However, 2023 saw the gaming operator record a substantial increase in revenue underpinned the market’s post-pandemic recovery, putting it “in a position where drawing on the facility provided by MRI is not commercially necessary,” the filing read.
[See more: Foreigner-only gaming rooms have failed in Macao, according to MGM]
MGM China and MRI mutually agreed to the voluntary cancellation, with no party liable to the other. The filing confirmed that the loan facility had not been utilised.
Last year, the concessionaire raked in more net revenue than it did in pre-pandemic 2019 – a significant milestone. It also recorded its highest ever adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA).
MGM China, which operates MGM Cotai and MGM Macau, contributed to 15.3 percent (US$3.46 billion) of 2023’s gross gaming revenue.
