Casino giant seeks US$2b syndicated loan

Bloomberg

MGM China (2282) is seeking around US$2 billion (HK$15.6 billion)-equivalent syndicated loan, according to people familiar with the matter, as the Macau casino operator is posting its fastest growth.

The company is in talks with over a dozen banks for a five-year Hong Kong dollar-denominated facility, said the people.

The borrowing, if completed, will be the group's first syndicated loan since the onset of the Covid-19 pandemic, according to Bloomberg-compiled data.

MGM China has become one of the fastest-growing casino operators in the Asian gambling hub, helped by a significant expansion of its gaming tables granted by the Macau authorities during Covid.

Its market share of gaming revenue jumped to an all-time high of 15.8 percent last year, compared to about 10 percent before the pandemic.

The group is also considering an expansion of its casino resorts in Macau as it seeks to attract customers beyond the traditional high rollers. But China's economic slowdown and regulatory scrutiny could weigh on the sector's growth.

Separately, Hillhouse Investment is in talks with banks to refinance a US$800 million loan that backed its acquisition of Chinese mattress maker AI Dream, sources said.

The new loan could carry a tenor of around five to seven years, they added.