MGM Resorts International Subsidiary MGM China Holdings Announces
Amendment and Extension of Credit Facility
LAS VEGAS, Oct. 23, 2012 /PRNewswire/ -- MGM Resorts
International (NYSE: MGM) today announced that MGM China Holdings
Limited, a 51%-owned subsidiary, has entered into an amended and
restated Hong-Kong-Dollar-denominated senior credit facilities
agreement in respect of facilities in an aggregate principal amount
equivalent to US$2 billion. The
facilities consist of a US$550
million equivalent term loan and US$1.45 billion equivalent revolving credit
facility. The facilities amend and restate the existing
US$950 million credit facilities of
MGM Grand Paradise, S.A., in their entirety, and extend the term of
those facilities for a five year period to October 29, 2017.
MGM China President and CEO Grant
Bowie said: "We are very pleased with the overwhelming
support from our financial partners which allowed us to upsize the
credit facility to US$2
billion. This financing along with our strong balance
sheet and free cash flow allows MGM China to grow its business and
maximize shareholder value."
Under the amended and restated facilities agreement, MGM China
has become a joint and several co-borrower with MGM Grand Paradise,
S.A. The material subsidiaries of MGM China continue to
guarantee the facilities, and MGM China, MGM Grand Paradise, S.A.
and their guarantor subsidiaries have granted security on
substantially all of their assets to secure the amended
facilities.
The facilities will bear interest at a fluctuating rate per
annum based on HIBOR plus a margin, initially set for a six month
period at 2.50% per annum, but thereafter the margin (in the range
of 1.75% to 2.50%) will be determined by MGM China's leverage
ratio.
The proceeds of the amended and restated facilities will be used
to refinance the existing credit facilities of MGM Grand Paradise,
S.A., future development opportunities including Cotai and for
general corporate purposes of MGM China and its subsidiaries.
The credit facility is expected to close on or about
October 29, 2012.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is one of the world's
leading global hospitality companies, operating a peerless
portfolio of destination resort brands, including Bellagio, MGM
Grand, Mandalay Bay and The Mirage. In addition to its 51%
interest in MGM China Holdings, Limited, which owns the MGM Macau
resort and casino and is in the process of developing a gaming
resort in Cotai, the Company has significant holdings in gaming,
hospitality and entertainment, owns and operates 15 properties
located in Nevada, Mississippi and Michigan, and has 50% investments in three
other properties in Nevada and
Illinois. One of those investments
is CityCenter, an unprecedented urban resort destination on the Las
Vegas Strip featuring its centerpiece ARIA Resort & Casino.
Leveraging MGM Resorts' unmatched amenities, the M life loyalty
program delivers one-of-a-kind experiences, insider privileges and
personalized rewards for guests at the Company's renowned
properties nationwide. Through its hospitality management
subsidiary, the Company holds a growing number of development and
management agreements for casino and non-casino resort projects
around the world. MGM Resorts International supports responsible
gaming and has implemented the American Gaming Association's Code
of Conduct for Responsible Gaming at its gaming properties. The
Company has been honored with numerous awards and recognitions for
its industry-leading Diversity Initiative, its community
philanthropy programs and the Company's commitment to sustainable
development and operations. For more information about MGM Resorts
International, visit the Company's website at
www.mgmresorts.com.
About MGM China Holdings Limited
MGM China is one of the leading casino gaming resort developers,
owners and operators in the greater China region. MGM China is the holding
company of MGM Grand Paradise, S.A., which holds one of the six
gaming concessions/subconcessions to operate casino games in
Macau. MGM Grand Paradise
currently owns and operates MGM Macau, the award-winning, premium
integrated casino and luxury resort located on the Macau Peninsula and is in the process of
developing a gaming resort in Cotai. It is traded on the Main Board
of the Stock Exchange of Hong Kong
under stock code 2282 and is a subsidiary of MGM Resorts
International (NYSE: MGM).
Statements in this release that are not historical facts are
forward-looking statements involving risks and/or uncertainties,
including those described in the Company's public filings with the
Securities and Exchange Commission. We have based
forward-looking statements on management's current expectations and
assumptions and not on historical facts. Examples of these
statements include, but are not limited to, statements regarding
MGM China's future operating results and the closing of its amended
and restated credit facilities. These forward-looking statements
involve a number of risks and uncertainties. Among the important
factors that could cause actual results to differ materially from
those indicated in such forward-looking statements include effects
of economic conditions and market conditions in the markets in
which we operate and competition with other destination travel
locations throughout the United
States and the world, the design, timing and costs of
expansion projects, risks relating to international operations,
permits, licenses, financings, approvals and other contingencies in
connection with growth in new or existing jurisdictions and
additional risks and uncertainties described in our Form 10-K, Form
10-Q and Form 8-K reports (including all amendments to those
reports). In providing forward-looking statements, the
Company is not undertaking any duty or obligation to update these
statements publicly as a result of new information, future events
or otherwise, except as required by law.
SOURCE MGM Resorts International