Key Takeaways:
MGM China Holdings Ltd. announced the issuance of $750 million in 6.25% senior notes, which are set to mature on May 15, 2033.
Fitch Ratings assigned the notes a ‘BB-‘ rating, in line with MGM China's corporate issuer default rating. The agency said it “believes the company’s ability to refinance debt is strong, given its improved competitive position, stable free cash flow generation and access to capital markets.”
The net proceeds from the issuance are expected to be approximately $739.9 million. The company plans to use the funds to repay a portion of the amounts outstanding under its revolving credit facility and for general corporate purposes. According to a report from CreditSights, this move is part of a strategy to address the company's upcoming $750 million bond maturity in May 2026.
This debt issuance is expected to have a neutral impact on the company's leverage, which Fitch estimates will remain around 2.1 times. The new notes will be listed on the Hong Kong Stock Exchange for professional investors.
The final 6.25% coupon is lower than the 6.50% area that was initially discussed, according to CreditSights, which saw fair value for the notes closer to 6.30 percent. The refinancing replaces a 5.875% bond due in 2026, extending the company's debt maturity profile.
The move follows a period of solid performance for the Macau casino operator, which saw its EBITDA increase 11 percent in 2025 amid a more promotional environment.
This refinancing extends MGM China's debt runway and demonstrates continued access to capital markets at a manageable interest rate. Investors will watch for the successful repayment of the May 2026 bond maturity, which would confirm the effectiveness of this refinancing strategy.
This article is for informational purposes only and does not constitute investment advice.
