Melco Resorts Finance Ltd, a unit of Nasdaq-listed Asian casino developer Melco Resorts and Entertainment Ltd, said in a press release on Tuesday that it planned to conduct an international offering of 4.875-percent senior notes due in 2025.
The company said the offering consists of US$350 million aggregate principal amount of additional notes, priced at 100.75 percent of the principal amount plus accrued interest from June 6, 2017 to, but not including, the issue date of the additional notes.
The net proceeds from the offer would be used to repay in full a US$350-million revolving credit facility of Melco Crown (Macau) Ltd, a subsidiary of Melco Resorts Finance, the firm had said. The credit facility was entered into by Melco Crown (Macau) in 2015.
Melco Resorts Finance did not specify whether the exercise was connected with the recent untying of business links between Hong Kong-listed Melco International Development Ltd, controlled by Lawrence Ho Yau Lung, and Australian casino operator Crown Resorts Ltd, controlled by James Packer.
In May, Crown Resorts completed the disposal of its remaining stake in Melco Resorts, a company that operates casino properties in Macau and in the Philippines.
Melco Resorts Finance had flagged in late May the pricing of an international offering of senior notes to an aggregate of US$650 million. The offering was officially announced in early June and consisted of 4.875-percent senior notes due in 2025, the unit had said. That exercise was to cover the redemption of all of the firm’s outstanding 5.00-percent senior notes due 2021.
The proposed additional notes will be issued under the same scheme. The pricing of the instruments is yet to be determined, but they would be offered and sold in the United States, to qualified institutional buyers, said Melco Resorts Finance.
(Updated at 9.55am, June 28)
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”A challenge to Macau's economic model could potentially emerge over the longer term should China revise existing criminal laws that prohibit most forms of gambling in the mainland... Even in such a scenario, Fitch would expect this to occur gradually”
Fitch Ratings Inc