By Paul A. Harris
Portland, Ore., May 26 – Melco Resorts & Entertainment Ltd. priced a $650 million issue of eight-year senior notes (Ba3/BB-) at par to yield 4 7/8% on Thursday, according to market sources.
The yield printed at the tight end of the 4 7/8% to 4.95% yield talk. Initial price talk was 5¼%.
The notes were trading at par ¼ bid, par ¾ offered on Friday morning, according a trader, who added that the notes will not be traded on the high-yield desk.
The deal had been marketed at benchmark size in high-grade fashion, with presentations to investors in Asia, Europe and the United States prior to the order book being opened, sources said.
ANZ and BofA Merrill Lynch were the joint global coordinators and joint active bookrunners.
As previously reported, the notes were issued through Melco Resorts Finance Ltd. and are not guaranteed by Melco Resorts & Entertainment.
The Macau-based owner and operator of gaming and resort properties plans to apply the proceeds toward the repurchase of its $1 billion of outstanding 5% senior notes due 2021, issued in February 2013.
Melco said it will also draw $350 million from Melco Crown (Macau) Ltd.’s 2015 revolver and use cash on hand to fund the redemption of all of its outstanding 5% senior notes due 2021, which is the announced use of proceeds.
| Issuer: | Melco Resorts Finance Ltd.
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| Securities: | Senior notes
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| Amount: | $650 million
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| Tenor: | Eight years
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| Joint global coordinators: | ANZ, BofA Merrill Lynch
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| Coupon: | 4 7/8%
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| Price: | Par
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| Yield: | 4 7/8%
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| Call protection: | Three years
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| Change-of-control put: | 101%
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| Special put: | 100% of the issue, would be triggered by certain events modifying the gaming license
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| Trade date: | May 25
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| Settlement date: | June 6
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| Ratings: | Moody’s: Ba3
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| S&P: BB-
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 4 7/8% to 4.95%
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