Melco Resorts Finance Limited will redeem in full $600 million of 5.625 percent senior notes on September 23rd, nearly 10 months before their scheduled maturity on July 17th, 2027.
The subsidiary of casino operator Melco Resorts & Entertainment said in a filing with the US Securities and Exchange Commission on Monday that the notes would be redeemed at 100 percent of their principal amount.
The company will also pay accrued and unpaid interest and any additional amounts applicable through the redemption date.
Interest will cease to accrue from September 23rd, provided Melco Resorts Finance pays the redemption price. After that date, noteholders will only retain the right to receive payment upon surrendering the securities.
The notes were issued at par in July 2019, with the proceeds used to partially repay borrowings under a revolving credit facility.
The latest notice did not disclose how the early redemption would be funded.
Melco reported earlier this month that it held total cash and bank balances of $1.04 billion as of June 30th, including $124.3 million in restricted cash. Available liquidity, comprising cash and undrawn revolving credit facilities, stood at approximately $2.80 billion.
The group had $7.05 billion in total debt, net of unamortized financing costs and original issue premiums, at the end of the second quarter.
In June, Melco extended the maturity of its revolving credit facilities from April 2027 to June 2031 and added an $821.6 million incremental facility. The changes increased total commitments under the facilities to approximately $2.77 billion.
Following the September redemption, Melco Resorts Finance’s next senior-note maturity will be $850 million of 5.750 percent notes due in July 2028.
