New Issue: China's MCE Finance prices $600 million 10¼% eight-year notes at 98.671 to yield 10½%

By Paul A. Harris

St. Louis, May 12 - MCE Finance Ltd. priced a $600 million issue of 10¼% eight-year senior unsecured notes (B1/B+/) at 98.671 to yield 10½% on Wednesday, according to an informed source.

The deal priced on top of the price talk.

Deutsche Bank Securities, Bank of America Merrill Lynch, RBS Investment Bank, ANZ Investment Bank, Barclays Capital, Citigroup, Commerz, Credit Agricole, NAB Securities and UBS Investment Bank were the joint bookrunners.

Proceeds will be used to reduce debt under the company's City of Dreams project facility.

The issuing entity is a financing unit of Melco Crown Entertainment Ltd., a Hong Kong-based developer, owner and - through a Macau subsidiary that holds a gaming sub-concession - an operator of casino gaming and entertainment casino resort facilities focused on the Macau market.

Issuer:	MCE Finance Ltd.
Face amount:	$600 million
Proceeds:	$592,026,000
Maturity:	May 15, 2018
Securities:	Senior unsecured notes
Bookrunners:	Deutsche Bank Securities, Bank of America Merrill Lynch, RBS Investment Bank, ANZ Investment Bank, Barclays Capital, Citigroup, Commerz, Credit Agricole, NAB Securities, UBS Investment Bank
Coupon:	10¼%
Price:	98.671
Yield:	10½%
Spread:	727 bps
Call protection:	Four years
Trade date:	May 12
Settlement date:	May 17
Ratings:	Moody's: B1
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	10½% area at a discount
Marketing:	Full roadshow

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