Melco US$19bln loan maturity extends by 2 years, issues new notes

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Melco US$19bln loan maturity extends by 2 years, issues new notes

Casino operator Melco Resorts & Entertainment Ltd has agreed to extend the maturity date of HK$14.85 billion (equivalent to US$1.92 billion) of its existing revolving credit facility by two years. 검빛경마

Melco Resorts said in a press release on Monday that the new maturity date will be April 29, 2027, rather than April 29, 2025.

Also listed in the U.S. on Monday, Melco Resorts said its subsidiary, Melco Resorts Finance, will offer senior bonds internationally. Melco Resorts itself "will not be the guarantor of the new bonds," the filing said.

The net proceeds will be used to "repay some of the outstanding principal and accrued interest and related expenses under the revolving credit facility" contracted by Emconate One Inc., a subsidiary of Melco Resorts Finance.

Interest rates and other conditions on the new notes will "be determined when pricing the public offering," the filing states.

According to Melco Resorts, the credit facility was established by Bank of China Ltd (Macao Branch) on April 29 of that year as a party and agent, including MCO Nominate One as a borrower.

After that, the contract was revised and rewritten on June 29, 2023.

The company repaid some of its outstanding loans and interest on March 28, "increasing availability under credit facilities to HK$7.8 billion in 2020," it said.

Melco Resorts Finance\'s 2023 annual report was also released on Monday through the United States, with long-term net debt down 11.8% year-over-year to less than $4.99 billion from nearly $5.66 billion in 2022.

Melco Resorts Finance had $3 billion worth of long-term debt in the "one to three-year" category as of Dec. 31.

Referring to the post-pandemic recovery of the group\'s operations, the 2023 annual report said: "We are focused on debt repayment and ongoing deleveraging while improving free cash flow and continue to actively manage our debt maturity profile and liquidity availability."

"We repaid $850 million in credit facilities in 2023 and repaid an additional $149.5 million in the first quarter of 2024," Melco Resorts Finance added.

"This month, we have extended the 2020 credit facility maturity date from April 2025 to April 2027."

Melco Resorts Group has yet to recover its dividend while suspending these payments during the COVID-19 pandemic.

The company\'s "number one goal is to continue to reduce debt," Lawrence Hoyau Lung, chairman and chief executive of Melco Resorts, said in a call with investment analysts in late February.

Melco Resort operates a Macau casino in the Philippine capital of Manila and a gaming site in the Mediterranean island of Cyprus. Melco Resort\'s net loss for 2023 was $326.9 million, improving from a loss of $930.5 million recorded in 2022.

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