Macau gaming operator MGM China Holdings is no longer prioritizing debt reduction after its leverage metrics recovered to below pre-pandemic levels, according to a new CreditSights report issued on Wednesday.
The analysis follows the Macau casino operator’s launch of a new $750 million senior unsecured bond offering due in 2033.
CreditSights said the refinancing move appeared aimed at extending MGM China’s debt maturity profile while preserving liquidity flexibility, rather than further reducing leverage. The research house noted that the operator’s leverage metrics had already recovered to below pre-pandemic levels since the second quarter of 2024.
The company is marketing a new $750 million 7NC3 senior unsecured notes offering — referring to seven-year notes that cannot be redeemed within the first three years — with pricing discussions reportedly in the 6.50 percent area. CreditSights, however, said it sees ‘fair value closer to 6.30 percent’ and added that it ‘would be buyers at our fair value estimate.’
CreditSights said the proceeds are expected to be used to repay borrowings under MGM China’s revolving credit facility, which the company had tapped to refinance its upcoming $750 million 5.875 percent bonds maturing in May 2026.
According to the report, MGM China’s revolving credit facility totals HK$23.4 billion ($3 billion), with approximately $663.3 million drawn as of March 31st, 2026, and matures in April 2030. CreditSights said management expects the latest bond issuance to have a neutral impact on leverage.
The research house said the decision to refinance through the bond market, rather than relying solely on the revolving credit facility, reflected broader strategic considerations, including extending the company’s debt maturity profile and preserving funding flexibility should bond market conditions deteriorate.
CreditSights maintained its ‘Outperform’ recommendation on MGM China and described the operator as its ‘top pick’ among high-yield Macau gaming issuers, citing its ‘strong post-pandemic recovery and conservative leverage profile.’
The report estimated MGM China’s gross leverage at 2.1 times as of the first quarter of 2026, compared with 2.7 times in 2019 before the COVID-19 pandemic. Net leverage improved further to 1.35 times as of March 2026, down from 1.5 times at the end of 2025.
CreditSights also noted that MGM China remained the only high-yield Macau casino operator whose leverage metrics had recovered to below pre-pandemic levels. The research house added that the operator’s Macau market share stood at approximately 15.4 percent in the first quarter of 2026, compared with 9.5 percent in 2019.
In the first quarter of 2026, MGM China reported total net revenue of HK$8.8 billion ($1.1 billion), up 10 percent year-on-year, while adjusted EBITDA increased 4 percent to HK$2.5 billion ($315 million). The company’s EBITDA margin declined to 28.0 percent from 29.6 percent a year earlier.
