Melco Resorts gives parent more time to repay loan

Jan 04, 2023 Newsdesk Industry Talk, Latest News, Macau  

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Casino operator Melco Resorts and Entertainment Ltd says it has agreed to extend the repayment date under a facility agreement with its parent company, Hong Kong-listed Melco International Development Ltd.

Melco Resorts granted in March last year a US$250.0 million revolving loan facility to Melco International, “for a period of 12 months after the first utilisation date”. A draw down by Melco International in the amount of US$200 million “was utilised on April 7, 2022,” according to a Tuesday filing by Melco Resorts.

“The company and Melco International have agreed to amend the final repayment date to June 30, 2024,” stated the Melco Resorts filing.

As previously announced, Melco International was entitled to “request utilisation of all or part of the loan” for “general corporate purposes” of the company and its subsidiaries.

Principal amounts outstanding under the facility agreement bear interest at an annual rate of 11 percent.

Melco Resorts is a company listed in the United States, being a subsidiary of Melco International. Lawrence Ho Yau Lung is chairman and chief executive of both Melco International and Melco Resorts.

In Macau, the Melco group operates the City of Dreams casino resort (pictured) and the Altira Macau casino hotel. It is also the majority owner of the Studio City casino resort, on Cotai. The firm also operates a chain of slot-machine parlours under the brand Mocha Clubs.

The group also has casino operations in the Philippines capital, via the City of Dreams Manila; and in Cyprus, where it currently runs some satellite casinos and is developing the City of Dreams Mediterranean casino resort, expected to open in the second quarter of this year.

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