MGM China is said to be in discussions with a consortium of lenders for a $2 billion syndicated loan, marking the casino operator's initial financing effort since the onset of the coronavirus pandemic in 2020. 

According to unnamed sources familiar with the situation, Bloomberg stated that MGM China is in discussions with about twelve lenders to secure $2 billion, intended to support expansion projects at its MGM Macau and MGM Cotai casino hotels—its gaming establishments in the special administrative region (SAR). It is anticipated that if the operator secures the funding, some of the revenue will be allocated to refinance current debt, which was $3 billion as of the close of 2024. The funding is being pursued during a period of expansion for the operator.

"MGM China saw market share at all-time high of 15.8% in 2024, up from 15.2% in 2023 and compared to 9.5% in 2019. MGM COTAI market share was 9.3% and MGM MACAU was 6.5%,” according to the gaming company’s 2024 results press release issued on February 12.

MGM Resorts International, based in Las Vegas and traded on NYSE as MGM, holds 56% of MGM China. 

Capital Markets Available for Gaming Firms 

The speculation about MGM China's attempt to secure a $2 billion syndicated loan, to be issued in Hong Kong dollars, comes during a period when gaming firms are benefiting from robust access to capital markets. 

Recently, Las Vegas Sands (NYSE: LVS) secured $9 billion to enhance its Marina Bay Sands integrated resort in Singapore, signifying one of the largest corporate loans in the city's history. The leading online sportsbook, DraftKings (NASDAQ: DKNG), is seeking a $500 million term loan. 

For MGM China, obtaining the syndicated loan should not pose significant difficulties since the operator had $2.21 billion in cash available at the end of last year, and it is bolstered in part by MGM's strong financial standing – elements that lenders will consider. As indicated by the 2024 EBITDA and gross gaming revenue (GGR) figures, MGM China possesses the assets that creditors seek. 

“MGM China continued to outperform industry recovery in 2024. Property visitation grew 54% year-on-year, reached 163% of 2019. Daily GGR was up 29% to 129% of 2019. Mass GGR (including slot) was up 33% to reach 179% of pre-COVID levels,” according to the statement.

Possible Hazards to MGM China's Loan Proposal 

MGM China's cash status, credit indicators, and earnings expansion favor its ability to secure the $2 billion in funding it is pursuing, although lenders are expected to closely examine the overall condition of the Macau gaming industry. 

As this year began, analysts speculated about the chances of the casino hub's GGR reaching prepandemic peaks, with some suggesting it might take another year to achieve those levels. There is also apprehension that China's decelerating economy and a possible trade conflict with the US may impact visitor numbers in Macau.