By Paul A. Harris
Portland, Ore., April 9 – Melco Resorts Finance Ltd. priced an upsized $750 million issue of eight-year senior notes (Ba3/BB-) at par to yield 7 5/8% on Tuesday, according to market sources.
The issue size increased from $500 million.
Deutsche Bank was the lead.
The yield printed at the tight end of the 7 5/8% to 7¾% revised yield talk, which tightened earlier Tuesday from 7¾% to 7 7/8%. Initial guidance was in the high-7% area.
The deal was heard to be playing to $2.7 billion of demand shortly before launching at 7 5/8% on Tuesday morning.
The 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.
| Issuer: | Melco Resorts Finance Ltd.
|
| Amount: | $750 million, increased from $500 million
|
| Issue: | Senior notes
|
| Tenor: | Eight years
|
| Lead: | Deutsche Bank
|
| Coupon: | 7 5/8%
|
| Price: | Par
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| Yield: | 7 5/8%
|
| Call protection: | Three years
|
| Trade date: | April 9
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7 5/8% to 7¾%, revised from 7¾% to 7 7/8%
|
| Marketing: | Roadshow
|
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