MGM China Holdings raised $750mn via a 5.8 non-call 2.8Y (5.8NC2.8) bond at a yield of 4.75%, 37.5bp inside initial guidance of 5.125% area. The bonds have expected ratings of Ba3/B+ and received orders over $4.3bn, 5.7x issue size. There is a change of control put option at 101 as well as a special put option at 100 if certain events relating to the termination, recession, revocation or modification of the company’s gaming license occur. IFR reports that all six of their licenses are up for renewal in June 2022. Proceeds will be used to repay part of a revolving credit facility and for general corporate purposes. Nomura notes the final pricing of the issue was slightly tighter than their fair value estimate of 4.8%, referencing MGM’s curve as well as that of other Macau casino operators.

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