Macau concessionaire Melco Resorts & Entertainment has announced a series of refinancing measures, including a Senior Notes offering and extension of the maturity date of a revolving credit facility as it continues to focus on paying down debt.
Studio City Finance Ltd, a subsidiary of Studio City International Holdings of which Melco owns a controlling 55% stake, has also announced a tender offer for up to US$100 million of its 6.000% Senior Notes due 2025.
The measures formed part of a series of NASDAQ filings overnight, with Melco revealing that proceeds of the proposed Senior Notes offering by its subsidiary Melco Resorts Finance – the operating entity City of Dreams Macau, Altira Macau and Mocha Clubs – will be used to make a partial repayment of the principal amount outstanding under a HK$14.85 billion (US$1.92 billion) revolving credit facility agreed in April 2020, as well as for general corporate purposes. Pricing and terms of the offer have yet to be determined.
At the same time, Melco Resorts & Entertainment revealed that the maturity date of the revolving credit facility has been extended from 29 April 2025 to 29 April 2027. Key terms of the facility, provided by Bank of China Limited, Macau Branch, remain unchanged, Melco said.
Studio City Finance Limited, the operating entity of Macau’s Studio City integrated resort, also announced that it has initiated a cash tender offer for up to an aggregate principal amount of US$100 million of its outstanding 6.000% senior notes due 2025, with the offer to expire on 6 May 2024.
Melco revealed during its 4Q23 earnings call that it will continue to focus on reducing its more than US$7 billion in debt, having paid down almost US$1 billion in 2023 as it looks to deleverage in the wake of the COVID-19 pandemic.
