BUSINESS

Melco Crown completes refinancing; Amax goes from red to black

TAGs: Amax Holdings, Macau, melco crown

Melco Crown refinancing doneOne of Macau’s largest operators has completed refinancing its credit facilities. Melco Crown’s deal, completed on June 30, means that the new facilities will cover around $1.2billion. It consists of around a long-term amortizing loan of $800million and a revolving credit facility of $400million. “Although the pricing terms of the new facilities are higher than the pricing terms of the City of Dreams project facility, we believe they are in line with market pricing terms,” the company says without citing any figures.

The refinancing deal is primarily connected to the City of Dream and Altira projects. Sands China also refinanced last month in order to strengthen their financial flexibility. Melco could be set for even more revenue, as their deal to take over part of the Cotai strip will mean more money for their coffers.

Also in Macau, gaming operator Amax Holdings Ltd has announced they’re back in profit. For the financial year ending in March, the company saw profits of HK$1.17billion. That compares extremely favorably with the last year’s reported loss of $2.48bn. One reason for the increase is a favorable revaluation of the company’s intangible assets. In addition to that there was also an improvement in the fortunes of Greek Mythology Casinos, a venture that Amax holds a 49.9% stake in. Their share of operating profit from this more than doubled to HK$271.2million from HK$90.4m last year. The casino now boasts around 60 VIP-gaming rooms and has grown from being a lower end casino to competing with what is present at the higher end of the VIP market.

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