MGM China’s proposed notes offering will be priced at US$500 million of senior unsecured notes due 2031, said ratings agency Fitch.
In a Tuesday note after MGM China revealed plans to issue the notes in order to reduced borrowings under a revolving credit facility, Fitch said it does not expect any material changes to the capital structure and respective recoveries, adding that its rating on the company’s existing senior unsecured notes is “BB-”.
Fitch also recently issued a “BB-” rating on both MGM China and its parent MGM Resorts International, which it said reflected MGM’s mid-5x EBITDAR leverage that was “commensurate with [their] rating, conservative financial policy and robust liquidity position. It also takes into consideration the company’s scale, strong competitive position and diversification in its Las Vegas and regional markets.”
In a separate note on Tuesday, Moody’s Investors Service assigned a “B1” rating to MGM China’s US$500 million notes offering, adding that the proposed refinancing is leverage neutral “as the company had recently drawn on the revolving credit facility to repay its $750 million notes which matured in May 2024, and pushes out the maturity of a portion of the company’s debt.”
MGM China recently booked a new quarterly record of US$301 million in Adjusted EBITDAR in 1Q24.
