Gaming operator MGM China is set to issue US$750 million in seven-year senior notes with proceeds earmarked to repay a portion of its debt under its 2025 unsecured revolving credit facility.
According to the purchase agreement filed with the Hong Kong Exchange yesterday, the new debt will carry an annual interest rate of 6.25 percent, payable semi-annually on 15 May and 15 November until 2033, with the first payment scheduled for 15 November 2026. The company estimates net proceeds of approximately HK$5.8 billion (US$740 million) after deducting offering expenses.
Following the announcement, S&P Global Ratings assigned a B+ issue-level rating to the Macao-based casino resort owner and operator, describing the transaction as leverage neutral.
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“We believe MGM China is closely linked to MGM’s reputation and brand. MGM China also represents about 23 percent of the company’s 2025 property-level EBITDAR [earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs], which we view as significant. Furthermore, MGM has demonstrated its willingness to use its liquidity to support MGM China,” the rating agency said in a press release.
The note issuance comes just a week after MGM China reported unaudited first-quarter financial results after its parents released its earnings. Revenues for the Macao business rose 10 percent to HK$8.8 billion, though EBITDA gained just 4 percent, contracting margins to 28 percent from the 29.6 percent reached in the first quarter of 2025.
Including slots, estimated mass market share grew to 16.2 percent from 15.8 percent while its VIP segment fell to 10.2 from 15.4 percent a year ago. Overall GGR market share fell 30 basis points to 15.4 percent.
[See more: Macao casinos generate 19.89 billion patacas in April revenue]
Earlier this year, MGM China doubled its royalty fees to its parent company, now paying 3.5 percent of its revenue. The new agreement added US$23 million to first-quarter costs, according to analysts at Jefferies, who noted that management expects underlying property margins to remain in the mid-to-high 20s while the Macao business focuses on premium-led growth.
Gross gaming revenues came in at a softer than expected 5.5 percent in April, bringing year-to-date growth to 8 percent. For 2026, Jefferies is forecasting GGR growth of 6.8 percent, with the VIP segment rising 4.8 percent while mass-market expands 6.9 percent.
