MGM China revealed Wednesday it is looking to conduct an international offering of Notes to professional investors, with a view to paying down existing debt.
The announcement follows a similar initiative announced by Las Vegas Sands (LVS) – parent company of Sands China and operator of Singapore’s Marina Bay Sands – earlier in the week. LVS said it had entered into an underwriting agreement with a group of banks to issue and sell US$500 million aggregate principal amount of 5.300% Senior Notes due 2031 and another US$500 million in 5.650% Senior Notes due 2033, with the offering expected to close around 13 May 2026.
Proceeds from the offering will, LVS added, be used to refinance its US$1 billion 3.50% senior unsecured notes due August 2026, as well as for general corporate purposes and stock repurchases.
In a Hong Kong Stock Exchange filing, MGM China outlined similar motives for its proposed Notes issue, which it said would be used to repay a portion of the amounts outstanding under its 2025 Revolving Credit Facility and for general corporate purposes. Pricing of the Notes will be determined through a book building exercise to be conducted by the joint global coordinators, the company explained.
MGM added that it will be permitted to reborrow such amounts under the 2025 Revolving Credit Facility.
In a note, Fitch Ratings said it anticipates MGM China will price US$750 million in senior unsecured notes due 2033 and has assigned them a “BB-” rating. It explained that MGM China also boasts a Long-Term Issuer Default Rating (IDR) at “BB-” with a Stable Outlook, reflecting its “strong competitive position through increased market share, ongoing improvements in Macau’s market, and access to capital to fund near-term capital projects and further debt reduction.”
Fitch added that the Stable Outlook reflects strong growth prospects in the Macau market and robust liquidity.
In regard to the LVS Notes offering, Fitch has assigned a “BBB” rating which it says reflects “improved credit metrics, strong performance in Singapore and a continued but slightly weaker-than-expected rebound in the Macau market.”
It stated, “LVS benefits from its scale in Macau, competitive market positions in Macau and Singapore, and robust FCF (free cash flow) generation. This is offset by a relatively heavy capital program and potential weakness in the Chinese economy. A Stable Outlook reflects continued strength in Singapore and slow improvement in Macau as well as steady credit metrics.”
