Hong Kong's Melco Crown finalizes tally of tenders for 10¼% notes

By Marisa Wong

Madison, Wis., Feb. 25 - Melco Crown Entertainment Ltd. subsidiary MCE Finance Ltd. said that holders tendered an additional $515,000 principal amount of its 10¼% senior notes due 2018 after the early tender deadline of the tender offer that expired at midnight ET on Feb. 25.

As previously announced, holders tendered $598.62 million principal amount, or 99.8%, of the 10¼% notes and delivered their consents as of the early tender deadline at 5 p.m. ET on Feb. 7. Settlement for the early tendered notes occurred on Feb. 8.

Payment for the additional notes tendered by the expiration of the offer is expected to be made on Wednesday.

The company said it will deliver a notice of redemption to holders of the remaining notes. The $865,000 outstanding principal amount will be redeemed on March 28, according to a Tuesday press release.

MCE Finance began the cash tender offer for any and all of its $600 million 10¼% notes on Jan. 28.

The company also solicited consents from noteholders to amend the indenture governing the notes. MCE needed the consent of holders of a majority in principal amount of notes to eliminate substantially all of the restrictive covenants and many of the events of default in the indenture and from holders representing two-thirds of the principal amount of notes to release the security interest in the collateral securing the notes.

As noted before, the total purchase price was $1,170.87 per $1,000 principal amount of notes tendered by the early tender deadline. The total purchase price included a $30.00 consent payment.

Holders who tendered after the early deadline but before the expiration date will receive $1,140.87 per $1,000 principal amount.

According to a previous press release, the tender offer and consent solicitation were conditioned on the company receiving enough financing to purchase the tendered notes and to pay for related fees and expenses.

MCE Finance priced $1 billion of eight-year senior notes on Jan. 29, as reported by Prospect News.

Deutsche Bank AG, Singapore Branch (+65 6423 5342; Deutsche Bank Securities Inc. at 855 287-1922 or 212 250-7527) is the dealer manager. Bondholder Communications Group, LLC (212 809-2663 or +44 207 382 4580) is the tender and information agent.

MCE Finance is a wholly owned subsidiary of Melco Crown Entertainment, a Hong Kong-based owner and developer of casino gaming and entertainment resort facilities.

© 2015 Prospect News.
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