Casino operator Melco Resorts and Entertainment Ltd confirmed in a Tuesday press release the pricing of a proposed new international offering of senior notes by its wholly-owned unit, Melco Resorts Finance Ltd.
The exercise would involve US$500-million in aggregate principal amount, of 5.750-percent senior notes due in 2028. The new instruments would be priced at 100 percent.
The net proceeds would be used to pay off the principal outstanding on a revolving credit facility under an agreement made by another group unit on April 29, and for “general corporate purposes,” said a Monday press release by the United States-listed parent.
On April 29, Melco Resorts, an operator of casinos in Macau, Cyprus and the Philippines, announced that its unit MCO Nominee One Ltd had secured from a syndicate of banks HKD14.85 billion (about US$1.92 billion) in revolving credit facilities for a five-year term.
Melco Resorts had said at the time it intended to draw the first loan under the new credit facility around May 6, with the proceeds being used to refinance a HKD13.65-billion credit facility agreed in June 2015 – where a portion of it is maturing this year – and for general corporate and working capital purposes.
The proposed notes – to be offered and sold in the United States to qualified institutional buyers – would be senior obligations of Melco Resorts Finance. Melco Resorts would not be a guarantor of the notes, it said.
Another entity linked to Melco Resorts has recently announced plans to raise an aggregate of US$1 billion via a dual-tranche offering of senior notes. Studio City International Holdings Ltd, the controlling entity for the Studio City casino resort in Macau, was also launching a series of private offers for its Class A ordinary shares, in a move backed by Melco Resorts.
(Updated 8.28am, July 15)
Oct 26, 2021Customers at Kangwon Land, South Korea’s only casino open to local players, will from November 1 need to have a “vaccine pass” proving they are fully-jabbed against Covid-19, before they can...
Oct 26, 2021
”“The Royal Commission finds Crown is unsuitable to hold a casino licence [in Melbourne] on the basis that it has engaged in conduct that is ‘illegal, dishonest, unethical and exploitative'”
Report from the Royal Commission into the Casino Operator and Licence
State of Victoria, Australia