MGM China reportedly seeking $2 billion syndicated loan in first post-pandemic borrowing

Macau casino operator MGM China Holdings Ltd. is in discussions with more than a dozen banks for a $2 billion-equivalent syndicated loan, marking its first major borrowing since the COVID-19 pandemic, according to sources familiar with the matter, as per Bloomberg. 

The five-year Hong Kong dollar-denominated facility is intended for refinancing purposes, though the final terms are still under negotiation. MGM China has thus far declined to comment on the financing.  

MGM China has emerged as the fastest-growing casino operator in Macau, bolstered by a significant increase in gaming tables granted by local authorities during COVID-19. In 2024, the company’s market share in gaming revenue surged to an all-time high of 15.8%, compared to 10% before the pandemic.  

The company is considering further expansion of its casino resorts in Macau as it seeks to attract a broader customer base beyond traditional high rollers. However, industry analysts note that China’s economic slowdown and heightened regulatory scrutiny on the gaming sector could present challenges to sustained growth.  

MGM China has been actively restructuring its finances in recent years:  

• In March 2024, the company canceled a $750 million loan from its parent firm, MGM Resorts International, which was provided as financial support during the pandemic.
 
• In June 2024, MGM China raised $500 million through a notes offering to repay part of its revolving credit facility.  

Macau, the world’s largest gambling hub, has seen a steady recovery since pandemic-related restrictions were lifted, but operators remain cautious amid economic uncertainties and evolving regulatory policies in China.