According to a statement from the operator, “the offering consists of $250m aggregate principal amount of Additional Notes, priced at 103.25% of the principal amount plus accrued interest from December 4, 2020 to, but not including, the issue date of the Additional Notes."
The net proceeds for the offering will be used to cover the principal amount drawn under the revolving credit facility, accrued interest and other general corporate purposes.
Melco Resorts Finance added: “Additional Notes will be issued under the indenture, dated December 4, 2019, pursuant to which Melco Resorts Finance issued $900m aggregate principal amount of 5.375% senior notes due 2029.”
The statement also briefly mentioned Melco’s financial situation, with “combined gross gaming revenues during October and November 2020 having increased by approximately 94% compared to those in the third quarter of 2020.” However, no exact numbers were posted.
The operator believes gross gaming revenue (GGR) will continue to be impacted by the pandemic and travel restrictions, and the company implemented a cost reduction program to minimise cash outflow of non-essential items.
Based on the implemented measures and current results, Melco Resorts expects to achieve break-even adjusted EBITDA by reaching 25% to 30% of its historical GGR run-rate.
