Melco Resorts unit gets waiver on credit facility ratios

Nov 30, 2020 Newsdesk Latest News, Macau, Philippines, Top of the deck  

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A unit of Asian casino investor Melco Resorts and Entertainment Ltd has been granted a number of amendments to the conditions of a loan facility it holds.

The agreement, stated Melco Resorts Finance Ltd in its latest quarterly report, was confirmed on Thursday, and involves a subsidiary called MCO Nominee One Limited.

The senior facilities agreement – that the Melco Resorts group had obtained in April this year – is with a number of banks, with Bank of China Ltd, Macau Branch; Bank of Communications Co., Ltd. Macau Branch; and Morgan Stanley Senior Funding Inc as joint global coordinators.

Under the agreement, the lenders made available HKD14.85 billion (equivalent to approximately US$1.92 billion) in revolving credit facilities for a term of five years, to the Melco Resorts group.

The newly stated conditions include the lenders waiving the requirements for Melco Resorts Finance to meet or exceed a number of previously-agreed financial ratios until the end of next year.

The Melco Resorts unit has agreed “to pay a customary fee to all consenting lenders” in relation to such consent, the filing stated.

On September 23, the Melco Resorts group drew down HKD1.94 billion (approximately US$250.0 million) of the revolving credit facility under the credit facilities, according to Melco Resorts Finance filing. The document added that, as of September 30, HKD12.91 billion (equivalent to approximately US$1.67 billion) of the revolving credit facility were available for future drawdowns.

Melco Resorts reported a third-quarter net loss of US$331.6 million. The firm’s total operating revenues for the period between July and September were just under US$212.9 million, up by 21 percent from the second quarter, said the firm in its quarterly earnings statement earlier this month.

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