Melco Resorts launches upsized $750 million eight-year senior notes at 7 5/8%; pricing Tuesday

By Paul A. Harris

Portland, Ore., April 9 – Melco Resorts Finance Ltd. launched an upsized $750 million offering of eight-year senior notes (Ba3/BB-) at 7 5/8%, at the tight end of the 7 5/8% to 7¾ final talk, according to market sources.

The deal, upsized from $500 million, was heard to be playing to $2.7 billion of demand and is set to price on Tuesday.

Earlier price talk had the notes yielding 7¾% to 7 5/8%, versus initial guidance in the high-7% area.

The Rule 144A and Regulation S notes come with three years of call protection.

Deutsche Bank is leading the notes’ sale.

The prospective issuer is a wholly owned subsidiary of Melco Resorts & Entertainment Ltd., a Macau-based casino operator, which plans to use the proceeds to pay down its revolver. The incremental proceeds resulting from the $250 million upsize will also be applied to revolver debt, as well as to general corporate purposes.

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