MGM China announced that it has called off a $750 million loan from majority shareholder MGM Resorts International. The decision was taken by the board of directors of the casino operator on March 15th, with the loan cancellation now effective, according to a filing to Hong Kong’s stock exchange.
The cancellation was formalized through a mutually agreed-upon letter executed by MGM and its controlling shareholder, reports Macau Business, which owns approximately 56% of the former’s issued share capital.
MGM China participated in a loan agreement in late 2022, following several years of pandemic restrictions and shortly before Macao’s borders reopened. The loan was intended to cover future working capital requirements.
However, MGM noted that it saw a “significant recovery” last year, following the phasing out of all Covid restrictions from the end of 2022. Revenue increased significantly in 2023, putting it “in a position where drawing on the facility provided by MRI is not commercially necessary,” the filing reads.
The casino operator’s 2023 net revenue stood at $3.2 billion, considerably up from the $674 million that was recorded in 2022. The difference marks a hike of 368%. When compared to the level of 2019, there was an increase of 9% in revenue.