Melco board approves corporate note redemption

Melco Resorts and Entertainment (Philippines) Corp. said its board has approved the redemption of up to P8 billion (US$157.2 million) out of the outstanding P15 billion in fixed-rate corporate notes.

The secured notes were issued in 2014 by its subsidiary, Melco Resorts Leisure (PHP) Corporation – carrying a fixed rate of 5 percent per year.

According to Melco’s filing to the Philippines Stock Exchange, the source of funds for the redemption would be entirely from Melco Leisure’s cash on hand.

In June, Melco announced plans to increase its capital base up to P11.9 billion in preparation for an equity raising activity to finance expansion and pay debts.