MGM China Ltd has priced an offering of 4.75% senior notes due February 2027 at US$750 million, with the company announcing Friday morning that it expects to raise around US$741 million in proceeds after taking costs into account.
Pricing of the notes comes after MGM China first revealed a proposed offer of notes earlier this week.
The company said Friday that it has now entered into a Purchase Agreement with BofA Securities, Inc., Bank of China Limited, Macau Branch and Industrial and Commercial Bank of China (Macau) Limited as representatives of the initial purchasers.
“The Company estimates that the net proceeds from the offering of the Notes will be approximately HK$5.74 billion, or US$741 million, after deducting the original issue discounts of the Initial Purchasers and other estimated offering expenses payable by the Company,” MGM China said.
“The Company intends to use the net proceeds from the offering of the Notes to repay a portion of the amounts outstanding under the Revolving Credit Facility and for general corporate purposes.”
MGM China revealed last May that it had entered into new agreements with its lenders to make available a revolving credit facility of HK$2.34 billion (US$302 million), increasable to HK$3.9 billion (US$503 million) pending certain conditions. It also issued US$500 million 5.25% senior notes due 2025 in June, at the height of the global COVID-19 pandemic.
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