MGM China, MGM Grand Paradise amend facility to provide flexibility

By Tali Rackner

Norfolk, Va., Feb. 4 – MGM China Holdings Ltd. and subsidiary MGM Grand Paradise, SA entered into an amendment to their second amendment and restated credit agreement on Tuesday, according to an 8-K filing with the Securities an Exchange Commission.

Bank of America, NA is the agent.

The amendment revised the leverage ratio definitions to: (a) include the MGM Cotai EBITDA on an annualized basis; and (b) increase the permitted maximum leverage ratios to 4.5 times from March 31 through June 30, 6 times from Sept. 30, 2016 through June 30, 2017, 5.5 times at Sept. 30, 2017, 5 times at Dec. 31, 2017, and 4.5 times thereafter.

In addition, the amendment provided flexibility to pay up to $150 million in permitted restricted payments for each consecutive 12 month period while the pro forma leverage ratio is in excess of 4 times.

MGM China is a subsidiary of MGM Resorts, a Las Vegas-based operator of resorts and casinos.

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