Melco Resorts Finance Announces Pricing of Senior Notes Offering

Rhea-AI Summary

Melco Resorts Finance has priced its international offering of senior notes, raising US$500 million through 5.750% senior notes due in 2028. The notes were priced at 100% and aim to refinance existing credit facilities and support corporate needs. These senior notes will rank equally with current senior debts but will not involve Melco as a guarantor. The offering applies under Rule 144A in the U.S. and Regulation S outside the U.S., with no intention to register the notes in the U.S.

Positive

• Successfully priced US$500 million in senior notes, allowing for refinancing of existing credit.
• Notes rated at 5.750%, which is competitive and may attract institutional buyers.

Negative

• Melco will not guarantee the new notes, increasing risk for investors.
• Notes not registered under the Securities Act, limiting resale options for investors.

MACAU, July 14, 2020 (GLOBE NEWSWIRE) -- Melco Resorts Finance Limited (“Melco Resorts Finance”) announces that it has priced its international offering of senior notes (the “New Notes”). Melco Resorts Finance is a wholly-owned subsidiary of Melco Resorts & Entertainment Limited (“Melco”). The offering consists of US$500 million aggregate principal amount of 5.750% senior notes due 2028. The New Notes were priced at 100%. Melco Resorts Finance intends to use the net proceeds from the offering to make a repayment of the principal amount outstanding for the revolving credit facility under the senior facilities agreement entered into by MCO Nominee One Limited, a subsidiary of Melco Resorts Finance, on April 29, 2020 and for general corporate purposes.

The New Notes are proposed to be senior obligations of Melco Resorts Finance, ranking equally with all of Melco Resorts Finance’s existing and future senior indebtedness. Melco will not be a guarantor of the New Notes.

The New Notes are being offered and sold in the United States to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and outside of the United States in reliance on Regulation S under the Securities Act. The New Notes will not be registered under the Securities Act or under the securities laws of any state or other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state laws. Melco Resorts Finance does not intend to register any portion of the offering of the proposed New Notes in the United States.

Nothing in this press release constitutes an offer to buy, or a solicitation of an offer to sell, securities in the United States or any other jurisdiction in which such offer or solicitation would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Melco Resorts Finance’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) growth of the gaming market and visitations in Macau, (ii) capital and credit market volatility, (iii) local and global economic conditions, (iv) our anticipated growth strategies, (v) gaming authority and other governmental approvals and regulations, and (vi) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. All information provided in this press release is as of the date of this press release, and Melco Resorts Finance undertakes no duty to update such information, except as required under applicable law.

For investment community, please contact:
Richard Huang
Director, Investor Relations
Tel: +852 2598 3619
Email: richardlshuang@melco-resorts.com

For media enquiries, please contact:
Chimmy Leung
Executive Director, Corporate Communications
Tel: +852 3151 3765
Email: chimmyleung@melco-resorts.com

FAQ

What are the details of Melco Resorts Finance's senior notes offering?

Melco Resorts Finance has priced US$500 million in 5.750% senior notes due in 2028, intended to refinance existing debt and for corporate purposes.

What is the significance of the new notes not being registered in the U.S.?

The lack of registration under the Securities Act limits resale options and may affect the liquidity of the notes for investors.

Who will guarantee the senior notes from Melco Resorts Finance?

Melco Resorts Finance's new notes will not be guaranteed by Melco, which poses higher risk and implications for potential investors.

What is the maturity date for Melco's new senior notes?

The new senior notes are due in 2028.

How does Melco intend to use the proceeds from the new notes?

The net proceeds will be used to repay outstanding principal under a revolving credit facility and for general corporate purposes.