Packer casino wins new loan deal

Studio City was allocated 250 new gaming tables when it opened last month, well short of the 400 the company anticipated when the covenants were drawn up on lending to the project.

“The amendments, which are in effect as of today, include changing the Studio City project opening date condition from 400 to 250 tables, consequential adjustments to the financial covenants, and rescheduling the commencement of financial covenant testing. Studio City, which opened on October 27, 2015, will continue its operations and obtain disbursements from the US$1.4bn Studio City loan, as scheduled,’’ Melco Crown said in a statement to the US Securities and Exchange Commission.

There is speculation the renegotiated deal contains a covenant holiday that removes Studio City’s need to meet certain established financial ratios in 2016.

It also reportedly allows Melco Crown to effectively double the property’s total leverage to nine times its first quarter earnings in 2017.

The amendment reportedly required consent from more than half of Studio City’s lenders, which include ANZ Bank and the Macau units of Bank of China and the Industrial & Commercial Bank of China Ltd.