MGM Resorts International's plans for further expansion in Macau and elsewhere in Asia received a positive boost with the news that the company's joint venture with Pansy Ho, MGM Grand Paradise, has entered into a new senior secured credit facility.
The new $950m credit facility refinances the company’s existing credit facilities and will provide it with additional liquidity.
"We are gratified by the overwhelming support from our financial partners," said Jim Murren, MGM Resorts International’s chairman and chief executive officer. "We have made significant progress in building our revenues at MGM Macau, which has resulted in a positive impact on our cashflows. We view the significant investor demand on this transaction as validation of our progress."
Ho, who serves as managing director of the company, said that the new credit facility demonstrates the support of both the local banks and the international financial market.
"This support enabled us to upsize the credit facility and provides us with a strong long-term capital structure," she remarked. "Our goal has been to continue to develop the highest quality resorts in the Macau marketplace. We will continue to execute on our growth strategy while further enhancing Macau as a world-class destination."
MGM’s relationship with Ho has been the subject of controversy in the US state of New Jersey, where the local gaming regulator questioned her suitability as a business partner. It is understood that in response to this, MGM is actively seeking to withdraw from the Atlantic City market and will instead direct more of its attention to its operations elsewhere in the US and Macau.
