May 18, 2011
Macau casino developer Melco Crown Entertainment Ltd (MPEL) plans to raise around US$350 million through an international yuan denominated bond offering. Approval in principle has been received for the listing of the bonds on the Singapore Exchange Securities Trading Limited (SGX-ST). The company said it would use the proceeds to fund potential expansion opportunities, which could include acquisitions, without giving details. Proceeds would also be used to repay debt, partially to pre-fund interest payments on the bonds, and for working capital and general corporate purposes. A person familiar with the deal told The Wall Street Journal that the company has hired Bank of America Merrill Lynch, Citigroup, Deutsche Bank and The Royal Bank of Scotland as book runners. MPEL also said it had reached a deal with a group of lenders to arrange and underwrite credit facilities of approximately US$1.2 billion, primarily to refinance the company’s City of Dreams project on Cotai. MPEL is co-chaired by Lawrence Ho, son of Macau gambling entrepreneur Stanley Ho, and Australian businessman James Packer, son of the late Kerry Packer.
