Melco Resorts and Entertainment has issued US$500 million in new senior notes to shore up its balance sheet as it continues to weather the impacts of Covid-19 on its casinos in Macau and Manila.
Proceeds from the notes, priced at 5.75 percent and due in 2028, will be used to pay off the portion of an HK$13.65 billion ($1.76 billion) credit facility dating back to 2015 that is currently due, the Nasdaq-listed company said.
The remainder of the proceeds will be used for “general corporate purposes.”
The outstanding portion of the 2015 facility is being refinanced under an HK$14.85 billion ($1.92 billion) revolver secured from a syndicate of banks in April by a Melco subsidiary, MCO Nominee One.
Another entity linked to Melco has recently announced plans to raise an aggregate of US$1 billion via a dual-tranche offering of senior notes.
Studio City International Holdings, the controlling entity for Melco’s Studio City casino resort in Macau, is also launching a series of private offers for its Class A ordinary shares.
