MGM Resorts International (NYSE:MGM) will make a subordinated revolving credit facility of up to $750 million available to MGM China, becoming the latest US-based parent to extend credit to its Macau unit.
The Las Vegas-based casino operator made the announcement in regulatory filings with the Securities and Exchange Commission (SEC) and the Hong Kong Stock Exchange (HKSE). The financing has a two-year term with an annual interest rate of 4%, plus “the prevailing market rate.” The Agreement highlights both MGM Resorts International’s and the Company’s confidence in the long-term growth potential of Macau. The availability of the Facility further bolsters the Company’s already strong financial position in meeting future working capital and other funding needs,” according to the HKSE filing. As of the date of the announcement, the Bellagio operator owns about 56% of the listed share capital of MGM China. That Macau concessionaire operates MGM Cotai and MGM Macau. MGM Joins Rivals Sands, Wynn With the MGM news, the trifecta of US-based operators loaning capital 메이저사이트 to Macau units is now complete. Analysts widely expected all three would have to do so due to the gaming industry slump in the special administrative region (SAR). In July, Las Vegas Sands (NYSE:LVS) announced it would loan Sands China $1 billion. The Las Vegas-based casino operator is loaning its Macau arm $1 billion, which is repayable on July 11, 2028. For the first two years of the loan, Sands China Ltd. (SCL) has the option of paying 5% cash interest, or 6% in-kind interest per year. After that, only cash interest at a yearly rate of 5% will be applicable. Sands China runs five Macau integrated resorts, making it the largest operator there. Why the Financing is Crucial MGM, Sands and Wynn are three of the six Macau concessionaires. But the SAR’s current retendering has seven participants thanks to the surprise entry of Genting Malaysia. The territory’s new gaming laws make clear licenses will be awarded to just six operators. That’s one reason the capital provided by the US companies to their Macau units is crucial, because the financial health of concessionaires is a front-and-center issue in the retendering scheme. So is the mandate that operators spend north of $1 billion in the years ahead on non-gaming amenities, meaning it’s pivotal concessionaires prove they have the financial resources to make good on that commitment.
0 Comments
MGM Resorts International is gifting $1 million to a Las Vegas autism foundation to help people with developmental disabilities land jobs with the company, President and CEO Bill Hornbuckle said.
The donation to the Grant a Gift Autism Foundation-Ackerman Center will be paid out over five years, said Hornbuckle, who made the announcement Thursday at the group’s annual fundraiser at Allegiant Stadium. The money will go toward a vocational training program and provide an avenue for autistic adults to get jobs at MGM properties in Las Vegas. MGM has “a responsibility to contribute to the social and economic progress of our community, including creating pathways to employment,” Hornbuckle said in a statement. Hornbuckle said the idea for the gift took shape last year after his wife, Wendy, became active with the autism organization. Part of its mission is to help people with autism land jobs though vocational programs. The gift will help facilitate a job training program tailored specifically for MGM, which employs about 55,000 people in Las Vegas and is the largest private employer in Nevada. Participants will go through 12 weeks of training to learn vocational skills. They will then have the chance to apply for certain open MGM positions. MGM operates 10 casino-resorts on the Las Vegas Strip: Bellagio, Aria, MGM Grand, Mandalay Bay, Park MGM, Mirage, New York-New York, Luxor, Excalibur and Cosmopolitan. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |