Melco Resorts Finance Limited, the Melco Resorts & Entertainment subsidiary that operates City of Dreams Macau, Altira Macau and Mocha Clubs, is proposing to conduct an international offering of senior notes as part of its plan to redeem all outstanding 5.250% senior notes due 2026.
The senior notes offering had not been priced, not the interest rate and other terms determined, at time of writing.
In a filing, Melco said the new notes are proposed to be senior obligations of Melco Resorts Finance, ranking equally with all of Melco Resorts Finance’s existing and future senior indebtedness.
The offering is planned to run in conjunction with a conditional cash tender offer for any and all of its outstanding 5.250% senior notes due 2026, although such a tender remains conditional upon the successful completion of the offering such that proceeds raised are sufficient to complete the purchase of the outstanding notes.
Completion of the proposed new notes offering is itself subject to market conditions and investor interest, Melco explained.
Rating agency Moody’s recently outlined its expectation that Melco, which reported a 16.2% year-on-year rise in gaming revenues to US$1.1 billion in the three months to 30 June 2025, will reduce its operating leverage from around 6.7x as of 30 June 2025 to around 5.4x in 2026 due to a continued increase in its revenues and profits.
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