Melco Crown Plans $1 Billion Dollar Bond, Seeks to Buy Back Existing Debt
01/28/2013| 09:36pm US/Eastern
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By Natasha Brereton-Fukui
SINGAPORE--Macau gaming operator Melco Crown Entertainment Ltd. (>> Melco Crown Entertainment Ltd (ADR)), via its subsidiary MCE Finance Ltd., is planning to sell a new dollar bond while offering to buy back its higher-cost outstanding debt, according to company announcements Tuesday.
The company is seeking to price a $1 billion eight-year dollar bond, callable after three years, to yield around 5.25%, a term sheet seen by Dow Jones Newswires showed. ANZ, Bank of America Merrill Lynch, Citi and Deutsche Bank are bookrunners on the planned deal.
Melco Crown plans to use the proceeds from the offering to buy back its $600 million 10.25% coupon dollar bond, due 2018, as well as to partially repay its yuan-denominated bonds, the term sheet indicated.
The company said in a statement that it was also seeking consent from holders of the existing dollar bonds to make the covenant less restrictive.
Melco Crown said it would pay $1,170.87 for every $1,000 of bonds tendered by 1700 EST on Feb. 7, and $1,140.87 for bonds tendered after that date but before midnight, New York time, on Feb. 25.
The company, which is backed by Lawrence Ho and James Packer--the sons of Macau gambling tycoon Stanley Ho and the late Australian casino-and-media magnate Kerry Packer, is one of six casino-license holders in Macau. It runs two casino-resort properties in the territory and has a 60% interest in a third project under development.
In July, Melco Crown also announced plans to enter the Philippines market by teaming up with local property developer Belle Corp. (>> Belle Corporation) on a casino resort that will cost at least $1 billion in an area the Philippines hopes will become Manila's version of the Las Vegas Strip.
--Kate O'Keeffe in Hong Kong contributed to this report.
Write to Natasha Brereton-Fukui at natasha.brereton-fukui@dowjones.com
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