MGM China announces $3bn refinancing deal

The monolith gaming entity MGM China Holdings (MGM China) has announced a new refinancing deal worth $3 billion.

The news comes from an official statement released by the entertainment giant and involves a new rolling credit facility for the Chinese arm of MGM Resorts International.

The statement released by MGM China mentions the two existing revolving credit facilities that the gaming entity relies on.

Both will be replaced by the new deal, according to the release, saying “The proceeds of the revolving credit facility will be used to refinance the existing Revolving Credit Facility and Second Revolving Credit Facility.”

Late in 2024, MGM Resorts International, which is based in the United States, reported significant growth in Asia, with the operator of the MGM China resort contributing massive net revenues of $929m. MGM China declared a “special dividend” in August 2024, returning $200 million in cash to MGM Resorts overall throughout the year.

Bill Hornbuckle, CEO and President of MGM Resorts International, said at the time of the worldwide growth for the company that “We are pleased to report record consolidated net revenues for the third quarter, driven by record results from MGM China.”

Despite this growth boon, in February 2025, rumours circulated that MGM China was looking for a $2 billion loan. Bloomberg then reported that the Chinese entertainment arm of MGM Resorts International was speaking to more than five separate lending institutions.

The plot thickens further as the recent release makes mention of the legal ownership percentages that are involved in MGM Resorts International’s holdings internationally.

If the controlling stake of MGM Resorts International in MGM China were to fall below 50%, then there would need to be a full repayment of the 2025 refinancing deal to the ownership group.

“The 2025 Revolving Credit Facility must be repaid if MGM Resorts International ceases to be the legal and beneficial owner directly or indirectly of more than 50% of the issued ordinary share capital of the Company (the “Specific Performance Obligations”).

It remains to be seen if MGM Resorts International and MGM China will part ways, but there seems to be a theme of US-based companies pivoting away from the Chinese market.

As we reported, Bet365 decided to cut ties with their Chinese customer base amid pressures from regulators, international red tape, and a growing political storm between both nations.

Image: Pexels.

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