Melco Resorts and Entertainment (Philippines) Corp. said its board approved the redemption of up to P8 billion from an outstanding P15 billion in fixed-rate corporate notes.
Melco said in a disclosure to the stock exchange the P15-billion corporate notes issued on January 2014 due 2019 carried a fixed rate of five percent a year.
The notes redemption is pursuant to the notes facility and security agreement signed by the company with Australia and New Zealand Group Ltd. and Deutsche Bank AG as joint lead underwriters and Philippine National Bank as facility agent.
“The source of funds for the Philippine Notes Redemption would be entirely from Melco Leisure’s cash on hand,” Melco said.
Melco, a unit of Melco Crown Entertainment Ltd. of Hong Kong, is the developer and operator the $1.3-billion City of Dreams Manila, a casino, hotel, retail and entertainment integrated resort located on a 6.5-hectare property within the Pagcor Entertainment City.
Melco in June announced plans to increase its capital base to up to P11.9 billion in preparation for an equity raising activity to finance expansion and pay debts.
“The reason for the proposed increase in the authorized capital stock of the corporation... is to enable the corporation to tap into any potential funding raising opportunities, in the form of equity offering..., ” Melco said.
Melco registered a net income of P352.2 million in the first six months of the year, a reversal from a loss of P1.42 billion year-on-year on significant increase in revenues from gaming operations.
Total operating net revenues amounted to P16.67 billion, up 64 percent from P10.15 billion posted in the same period a year ago as casino operations, which accounted for 93 percent of total operating revenues, surged 70 percent to P15.55 billion.