MGM China Said to Get Approval to Amend $3 Billion Loan
- Company receives consent from lenders before Jan. 29 deadline
- Casino companies are suffering from declining revenue
Macau saw gaming revenue dropping 34 percent in 2015 after China’s economic slowdown and anti-corruption campaign deterred high rollers from betting at the city’s casinos.
Photographer: Billy H.C. Kwok/BloombergMGM China Holdings Ltd. received consent from banks to amend the terms on its HK$23.4 billion ($3 billion) loan as the declining fortunes of Macau’s gambling houses are making it difficult for companies to meet their lending requirements, people with knowledge of the matter said.
The Macau unit of MGM Resorts International, the largest casino company on the Las Vegas Strip, has received approval from two-thirds of its lenders to relax its financial conditions, including loosening covenants on its leverage ratio, according to people, who are asked not to be identified because they aren’t authorized to speak publicly. The consent came before a Jan. 29 deadline.