Melco Resorts Finance Announces Proposed 5.750% Senior Notes Offering

Rhea-AI Summary

On August 3, 2020, Melco Resorts Finance announced an intention to conduct an international offering of 5.750% senior notes due 2028, aimed at general corporate purposes. This follows a prior issuance of US$500 million in senior notes. The Additional Notes will be consolidated with the Original Notes under the existing indenture. Pricing for the offering will depend on market conditions and investor interest, with no binding agreements currently in place. The notes will be sold to qualified institutional buyers in the U.S. and internationally under applicable regulations.

Positive

• Proposal for an international offering of 5.750% senior notes may attract investor interest.
• Additional Notes will be consolidated with the existing US$500 million senior notes, providing a unified offering.

Negative

• No binding agreement exists for the proposed offering, introducing uncertainty.
• The offering is subject to market conditions, which may affect its success.

MACAU, Aug. 03, 2020 (GLOBE NEWSWIRE) -- Melco Resorts Finance Limited (“Melco Resorts Finance”) announces that it proposes to conduct an international offering of 5.750% senior notes due 2028 (the “Additional Notes”), the net proceeds from which will be used for general corporate purposes. Melco Resorts Finance is a wholly-owned subsidiary of Melco Resorts & Entertainment Limited (“Melco”).

The proposed Additional Notes will be issued under the indenture, dated July 21, 2020 (the “Indenture”), pursuant to which Melco Resorts Finance issued US$500 million aggregate principal amount of 5.750% senior notes due 2028 (the “Original Notes”).  The Additional Notes will constitute additional notes under the Indenture and will be issued on the same terms and conditions (other than the issue date and issue price) and will be consolidated and form a single series with the Original Notes. Melco will not be a guarantor of the Additional Notes.

The issue price of the Additional Notes will be determined at the time of pricing of the offering. Completion of the proposed offering of the Additional Notes is subject to market conditions and investor interest. As no binding agreement in relation to the proposed offering of the Additional Notes has been entered into as at the date of this press release, the proposed Additional Notes may or may not be issued.

The Additional Notes are being proposed to be 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 proposed Additional 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 Additional 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 is the purpose of Melco Resorts Finance's proposed senior notes offering?

The proposed offering is intended for general corporate purposes.

What are the terms of Melco's Additional Notes due 2028?

The Additional Notes will have an interest rate of 5.750% and will consolidate with the US$500 million Existing Notes.

Who will the Additional Notes be offered to?

They will be offered to qualified institutional buyers in the U.S. and internationally.

Is there a guarantee for the Additional Notes by Melco?

No, Melco will not guarantee the Additional Notes.

What could affect the completion of the Additional Notes offering?

The offering is subject to market conditions and investor interest.