Macau casino operator MGM China Holdings Limited has reportedly announced that it has been granted a new revolving credit facility that it will utilize to help its business survive the recent slowdown caused by the ongoing coronavirus pandemic.

According to reports from Inside Asian Gaming and GGRAsia, the Hong Kong-listed firm used an official Tuesday filing to declare that the provision agreed with lenders is worth approximately $301.85 million but may be increased under ‘certain conditions’ to slightly over $503 million.

Tumbling results:

GGRAsia reported that MGM China Holdings Limited recently saw aggregated first-quarter net revenues for its large MGM Macau and MGM Cotai properties fall by 63% year-on-year only $270.91 million while their associated earnings before interest, tax, depreciation and amortization hit a deficit of almost $12.91 million. Travel restrictions put in place following Macau’s 15-day coronavirus-related casino lockdown in February have moreover purportedly caused these venues’ combined occupancy rate to drop to only 36% as they together burn through around $1.5 million every day.

Restricted accessibility:

Majority owned by giant American casino operator MGM Resorts International, MGM China Holdings Limited also reportedly detailed that it may access this new provision at any time up to one month before its May 15, 2024, maturity date so long as it can provide evidence that it has exhausted its existing $1.25 billion senior unsecured revolving credit facility.

Considered lending:

The Macau casino operator additionally proclaimed that its new-found cash provision is to be subject to a fluctuating annual interest rate grounded on the Hong Kong Interbank Offered Rate (HIBOR) alongside a margin based on its ‘leverage ratio’ that could hit as high as 2.75%. The source purportedly detailed that the arrangement furthermore calls for any outstanding monies to be immediately repaid if MGM Resorts International ceases to be the majority owner of MGM China Holdings Limited.

Reportedly read the filing from MGM China…

“The proceeds of the revolving credit facility will be used for ongoing working capital needs and the general corporate purposes of the group.”