MGM China has 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.
The agreements come in the midst of the COVID-19 pandemic that has seen revenue at the company’s Macau integrated resorts – MGM Cotai and MGM Macau – slow to a standstill since casinos were reopened on 20 February following a forced 15-day closure.
MGM recently reported a 63% year-on-year decline in net revenues for the three months to 31 March 2020, citing daily cash burn of US$1.5 million while its properties remain largely empty.
According to a Tuesday filing, the company can access its new revolving credit facility up to one month before its final maturity date of 15 May 2024.
“The proceeds of the revolving credit facility will be used for ongoing working capital needs and general corporate purposes of the Group,” it said.
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