Casino operator MGM China Holdings Ltd. (2282.HK) said on Thursday it will issue $750 million worth of senior notes bearing an annual interest rate of 6.25%, payable semi-annually, and maturing on May 15, 2033.
After deducting discounts to buyers and corporate expenses, estimated net proceeds from the sale will total about $740 million. The company plans to use the funds to repay outstanding revolving credit facilities and for general working capital purposes.
MGM China said it may redeem some of the notes before May 15, 2029, at a price equal to or greater than 100% of the principal amount, plus accrued and unpaid interest up to the redemption date.
Shares of MGM China opened flat at HK$11.48 on Thursday. The stock is down over 30% from its 52-week high.
By Lau Chi Hang
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