MGM Resorts International (MRI) is issuing a loan of ‘up to $750 million’ to MGM China, according to an announcement by the company on Thursday. The group notes that the loan ‘highlights both MRI’s and the company’s confidence in the long-term growth potential of Macau’.
The loan ‘bolsters the company’s already strong financial position in meeting future working capital and other funding needs’, notes MGM China. It is set at an interest rate of 4 percent per year and the prevailing market rate and has a term of 24 months after the date of the agreement.
MRI owns approximately 56 percent of the issued share capital of MGM China.
The loan issuance comes after MGM China registered a 70 percent annual drop in net revenues for the third quarter, of $87.48 million.
Casino revenues during the period amounted to just $70 million for MGM China, a 72 percent annual drop.
The Macau operational results come as MGM Resorts reported its “best quarter in our Las Vegas Strip history”.
