Melco Crown (Philippines) Resorts Corp., a subsidiary of Macau-based Melco Crown announced late last week that it had raised Php15 billion ($330 million) in senior notes, money it says will be used on “capital expenditure, refinancing of debt and general corporate purpose”.
According to Melco, the notes, which were raised through a private placement to a group of local investors within the Philippines, will carry a five-percent interest rate per year with maturation set for 2019. Likewise, the notes are completely guaranteed by the company and its subsidiaries and were given to an exclusive list that includes no more than 19 “primary institutional lenders”.
Considering that Melco is in the middle of building its City of Dreams Manila resort and casino with Belle Corporation, a company owned by Philippine tycoon Henry Sy, that amount of money will come in pretty handy with the construction and development of the $1.3 billion facility. “It will be money well spent and the end product will be many times that, “ Lawrence Ho, the CEO of Melco Crown Entertainment, told reporters.
City of Dreams Manila is expected to open in the middle of next year with a host of luxurious amenities, including a casino that will include 365 gambling tables, 1,680 slot machines, and another 1,680 electronic gaming tables. As far as the none-gaming aspect of the resort, City of Dreams Manila will also feature luxury hotels, a family entertainment center, nightclubs, and numerous high-end dining and retail options.
It figures that with the target date drawing closer and closer, both Belle Corp and Melco Crown are pulling out all the stops to ensure that the project is delivered on time, and more importantly, received well by the country’s growing gambling market. Having that $330 million at its disposal will go a long way to ensuring that City of Dreams Manila lives up to the standards of its famous Macau brethren.
