MGM China is reportedly in discussions with a consortium of lenders to secure a $2 billion syndicated loan, marking its first major financing move since the COVID-19 pandemic began in 2020.
According to sources cited by Bloomberg, the casino operator is engaging with up to a dozen lenders in pursuit of the funding, which would support expansion projects at MGM Macau and MGM Cotai. If finalized, part of the loan proceeds could also be used to refinance existing debt, which totaled about $3 billion at the end of 2024. The financing effort comes as the company continues to build momentum.
In 2024, MGM China achieved a record market share of 15.8%, up from 15.2% in 2023 and significantly higher than its 9.5% share in 2019. MGM Cotai accounted for 9.3% of the market, while MGM Macau contributed 6.5%, according to the company’s full-year results released on February 12. Las Vegas–based MGM Resorts International (NYSE: MGM) holds a 56% stake in MGM China.
Gaming Firms Find Capital Markets Receptive
Speculation around MGM China’s potential Hong Kong dollar–denominated syndicated loan comes at a time when gaming operators are finding capital markets increasingly accessible.
Las Vegas Sands (NYSE: LVS) recently secured a $9 billion loan to fund expansion at Marina Bay Sands in Singapore—one of the largest corporate financings in the city-state’s history. Meanwhile, online betting leader DraftKings (NASDAQ: DKNG) is reportedly seeking a $500 million term loan.
For MGM China, raising $2 billion may prove manageable. The company ended 2024 with $2.21 billion in cash and benefits from the strong balance sheet of its parent company. Lenders are also likely to consider the operator’s improving EBITDA and gross gaming revenue trends.
“MGM China continued to outperform industry recovery in 2024,” the company said, noting a 54% year-on-year increase in property visitation, reaching 163% of 2019 levels. Daily GGR rose 29% to 129% of pre-pandemic levels, while mass GGR, including slots, climbed 33% to 179% of 2019 performance.
Possible Headwinds Remain
While MGM China’s liquidity, credit profile, and earnings growth strengthen its case for securing the loan, lenders may still weigh broader risks tied to Macau’s recovery.
Analysts have questioned whether the region’s gaming revenue will fully return to pre-COVID levels this year, with some suggesting a longer recovery timeline. Additionally, concerns over China’s slowing economy and the potential impact of renewed US-China trade tensions could dampen visitation and spending in Macau.
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