Macau casino operator MGM China Holdings Ltd, a subsidiary of U.S.-based operator MGM Resorts International, is proposing a US$1.25-billion senior unsecured notes issuance.
The operation – via a private placement – was announced on Tuesday. Pricing of the notes “will be determined through a book building exercise”, Hong Kong-listed MGM China said in a filing.
The appointed joint global coordinators for the issuance are Deutsche Bank AG, Singapore branch and brokerage Merrill Lunch, Pierce, Fenner & Smith Inc, the document said.
Net proceeds from the offering will be used “to repay amounts under [MGM China's] revolving credit facility and term loan facility, and for general corporate purposes”, the firm stated.
Fitch Ratings said on Thursday it was assigning ‘BB’ rating – two levels below investment grade – to MGM China’s proposed US$1.25 billion-unsecured notes issuance.
“MGM [China] will gain market share as MGM Cotai continues to ramp up, following the introduction of VIP operations in late 2018,” the ratings agency said. That was a reference to MGM Cotai, a casino resort operated by MGM China in Macau’s Cotai district. The property was launched in February last year.
“Fitch forecasts MGM Cotai will generate over US$200 million in incremental earnings before interest, taxation, depreciation and amortisation (EBITDA) once fully ramped up,” it added. MGM China reported adjusted property EBITDA for the first quarter of this year of nearly HKD1.62 billion (US$203 million), an increase of 26.8 percent from the prior-year period.
Aug 16, 2019JP Morgan Securities (Asia Pacific) Ltd says it expects the protests that have been taking place for several weeks in Hong Kong to have a minor negative impact on Macau’s casino gross gaming...
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