MGM China issues US$750 million senior notes for debt refinancing

MGM China (2282) has announced the issuance of US$750 million (HK$5.85 million) senior notes for debt financing, with an interest rate of 6.25 percent per annum, maturing on May 15, 2033.

The estimated net proceeds of around US$739.9 million are intended to repay a portion of the outstanding amounts under its revolving credit facility and for general corporate purposes. At the same time, the company will be permitted to re-borrow the relevant amounts under its revolving credit facility.

The stock opened flat this morning at HK11.48 and fell more than 1 percent to HK11.30. It was last trading at HK$11.45, down 0.26 percent.

The company stated that the board believes the proposed note issuance will benefit the company by raising additional funds and is in the company's and its shareholders' best interests.

The notes are being issued at 100 percent of their principal amount, with the issue date set for May 13 (New York time). The interest rate is 6.25 percent per annum, payable semi-annually in arrears on May 15 and November 15 of each year, with the maturity date on May 15, 2033.

 

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