MGM China Secures US$750 million in Senior Notes for Debt Refinancing

MGM China Holdings completed the issuance of US$750 million in senior notes at a coupon rate of 6.25% per annum, maturing May 15, 2033, as the company moves to proactively refinance its credit facility ahead of upcoming maturity obligations. The proceeds are earmarked to repay amounts outstanding under MGM China's 2025 Revolving Credit Facility and to retire its approximately US$750 million May 2026 bond, which carried a 5.875% interest rate — effectively extending the maturity profile at a modestly higher cost in the current rate environment.

The transaction received credit ratings of 'B+' from S&P and 'BB-' from Fitch, consistent with the company's existing debt profile. Analysts expect the refinancing to have a broadly neutral impact on MGM China's leverage ratios, as the notes replace similar-sized existing obligations rather than adding incremental debt to the balance sheet. Notably, Las Vegas Sands undertook a similar notes offering in the same week, suggesting that Macau gaming operators are taking advantage of current market access to shore up their capital structures before any potential volatility in Asian credit markets.

For MGM and its Macau subsidiary, the refinancing removes a near-term maturity cliff and provides financial flexibility to continue investing in the MGM Cotai and MGM Macau properties. Macau gross gaming revenue has recovered significantly since the 2022-2023 COVID disruptions, and operators with improved balance sheet flexibility are better positioned to capture any further upcycle in VIP and mass market volumes through 2026 and 2027.

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