Melco Resorts lists 5.38% senior notes due 2029

Melco Resorts has announced it is offering 5.375 per cent senior notes due 2029 issued by its subsidiary, Melco Resorts Finance Limited on the Chongwa (Macao) Financial Asset Exchange.

Macau.- Melco Resorts has reported that it is offering 5.375 per cent senior notes due 2029 that were issued by Melco Resorts Finance in December 2019 and January 2021. 

Through a company filling, Melco Resorts said the listing demonstrates the company’s confidence in the city’s further development as a world-recognised financial hub and tourism centre.

The notes were issued by Melco’s subsidiary, Melco Resorts Finance Limited (“Melco Resorts Finance”), on the Chongwa (Macao) Financial Asset Exchange (MOX). 

Lawrence Ho, chairman and chief executive officer of Melco Resorts & Entertainment, said: “We gladly support the diversified development of local Macau industries through our wide-reaching of corporate social responsibility initiatives. 

“We are pleased to back the local financial industry through our newly announced senior notes listing on the MOX as a solid confirmation of our support to the government’s directions on the diversified development of Macau.” 

Last week, Morgan Stanley banking group predicted Melco Resorts & Entertainment could raise its dividend payout to help Melco International Development fund plans for a non-gaming complex in Zhongshan in China’s Guangdong province.

Analysts said Melco Resorts had an HKD$2.2bn (US$283m) cash outflow commitment to the non-gaming complex.

After sharing its results for the first quarter of the year 2020, Melco Resorts said it was suspending its quarterly-dividend programme to “preserve liquidity” mainly due to struggles caused by the Covid-19 pandemic.

Morgan Stanley reported in 2019 that Melco International received dividends by Melco Resorts of HKD$1.4bn and expects a dividend of HKD$1.0bn in 2022 if the dividend programme is reinstated.

As of the end of 2020, Melco Resorts had HKD$6.7bn net debt “with no real assets”, so an additional cash commitment of almost HKD$2.2bn regarding the Zhongshan complex “is not small.”