Melco Resorts Finance Launches $500 Million Senior Notes Offering

Melco Resorts Finance Announces Senior Notes Offering

Melco Resorts Finance Limited has taken an important step with its recent announcement regarding a new senior notes offering. This offering, valued at a substantial US$500 million, aims to bolster the financial stability and operational capabilities of Melco Resorts Finance, a key subsidiary of Melco Resorts & Entertainment Limited.

Details of the New Notes Offering

The offering comprises 6.500% senior notes that are set to mature in 2033. These new notes, priced at 100%, reflect the company's robust expectations for future growth and financial management. The funds raised through this offering will be primarily allocated towards a previously announced cash tender offer for the existing 5.250% senior notes that are due in 2026, along with associated fees and costs related to the new offering.

Utilization of Proceeds

The proceeds from the new notes will provide Melco Resorts Finance with the flexibility to advance its business strategies effectively. A portion of these funds will be directed towards redeeming existing outstanding notes if deemed necessary after the conclusion of the tender offer. This strategic approach not only helps manage existing debt but also enhances overall financial health.

Key Features of the New Notes

The new notes represent senior obligations of Melco Resorts Finance and will rank equally with all existing and future senior indebtedness. Notably, Melco Resorts & Entertainment will not act as a guarantor for these notes, emphasizing the self-sufficiency and strength of the finance subsidiary. This move is anticipated to provide investors with an attractive opportunity, given the current market conditions.

Regulatory Compliance and Offer Details

As part of the offering process, these senior notes are being made available to qualified institutional buyers in the United States, adhering to Rule 144A of the U.S. Securities Act. Furthermore, the offering is compliant with Regulation S outside the United States. Importantly, the new notes will not be registered under the Securities Act, indicating a targeted approach towards investor relations and capital markets.

Managing Investor Expectations

In the context of a dynamic and sometimes unpredictable financial environment, it is crucial for companies to manage investor expectations effectively. Melco Resorts Finance has acknowledged this by being transparent about the risks associated with its operations. These include potential fluctuations in the gaming market and concerns regarding regulatory changes in Macau. By openly addressing these factors, the company seeks to align its strategic objectives with market realities.

Corporate Contact Information

For individuals interested in the investment aspects of this offering, Melco has designated contact personnel to address inquiries. Jeanny Kim serves as the Senior Vice President and Group Treasurer and can be reached directly for investment-related questions. The corporate communications team, led by Chimmy Leung, is also available for media inquiries, ensuring that all stakeholders have access to the necessary information.

Frequently Asked Questions

What is the amount of the senior notes offering by Melco Resorts Finance?

The senior notes offering is valued at US$500 million.

What is the interest rate and maturity for the new notes?

The new notes carry an interest rate of 6.500% and are set to mature in 2033.

What will the proceeds from the offering be used for?

The proceeds will be used for a cash tender offer, to pay fees related to the offering, and for general corporate purposes.

Who can purchase the new notes?

The notes are being offered to qualified institutional buyers in the United States and others outside the U.S. under Regulation S.

How can I contact Melco Resorts Finance for more information?

Investors can contact Jeanny Kim for investment-related questions or Chimmy Leung for media inquiries.

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