Melco Extends US$1.94 Billion Credit Line to 2031
Melco Resorts & Entertainment Limited has extended the maturity of its existing HKD15.24 billion credit line equivalent to US$1.94 billion for another 4 years. In the latest development, the Nasdaq-listed casino company stated that its amended credit line includes an additional tranche and thereby raises its overall commitments to HKD21.68 billion.
Facility Maturity Pushed Back
The company said the maturity date of its 2020 credit facilities has been moved from 29 April 2027 to 9 June 2031 under a third amended and restated facility agreement signed on Tuesday. The extension gives Melco a longer funding runway as it continues to manage its operations and ongoing projects across multiple markets.
Melco said the new arrangement includes an incremental facility of HKD6.44 billion. Combined with the existing revolving credit line, the total commitment under the credit facilities now stands at approximately HKD21.68 billion.
The casino operator said the key terms of the financing package, including pricing and financial covenants, remain unchanged. Its subsidiary MCO Nominee One Ltd, which is the borrower under the facility, has agreed to pay customary fees to lenders taking part in both the extension and the incremental facility.
Original Financing Structure
The revolving credit facilities were first established in April 2020 through a senior facilities agreement involving MCO Nominee One and Bank of China Macau Branch, which acts as agent. The latest amendment builds on that original structure while pushing the maturity further out.
Melco Resorts operates casinos in Macau, one in Manila, the Philippines, and several in the Republic of Cyprus. In the third quarter last year, the company also launched a new casino in Colombo, the capital of Sri Lanka.
Liquidity And Debt Position
In April, Melco said it had cash and bank balances of US$1.07 billion as of 31 March, against total debt of US$6.67 billion. It also reported available liquidity of about US$2.36 billion and capital expenditure of US$73.6 million in the first quarter this year, mainly linked to enhancement projects in Macau.
At the same time, the company said it would pay US$375 million for the Melco trademark and other related brands. That move gave the group additional flexibility to expand its brand, according to earlier reporting.
Macau Projects Continue
Melco is also moving ahead with the rebranding of the Countdown Hotel as REM at its City of Dreams complex in Macau. The project is part of the company’s broader efforts in the city as it continues to invest in property upgrades and branding initiatives.
The latest credit facility extension provides another layer of financial support as Melco works through those plans. With the maturity pushed out to 2031 and an extra tranche added, the company has expanded its borrowing capacity while keeping the main terms of the deal unchanged.
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Source: GGR Asia
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