International edition
June 17, 2021

The Macau Studio City project is expected to cost us$ 2.5 billion

Melco Crown to sign us$ 1.4 billion loan

(Macau).- Melco Crown Entertainment on Friday will sign the us$ 1.4 billion syndicated loan backing its Macau Studio City project, banking sources said. The loan was led by eight mandated lead arrangers and bookrunners, including Bank of China Macau, Industrial & Commercial Bank of China Macau, ANZ, Bank of America Merrill Lynch, Citigroup, Deutsche Bank, Credit Agricole CIB and UBS.

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OC and ICBC hold us$ 300 million and us$ 250 million, respectively, while CA-CIB and UBS hold us$ 65 million and us$ 60 million. The rest ended up with us$ 75 million each. Sixteen other banks joined in general syndication, ending up with us$ 425 million of the deal. Bank of Communications Macau came in with us$ 100 million as MLA, while six joined as lead arrangers.

These were Banco Nacional Ultramarino (us$ 65 million), Bank of East Asia Macau (us$ 40 million), National Australia Bank (us$ 40 million), Bank of Nova Scotia (us$ 30 million), Tai Fung Bank (us$ 21 million) and Wing Lung Bank (us$ 21 million).

Joining as arrangers were Banco Espirito Santo (us$ 40 million) and China Citic Bank (us$ 20 million). Cathay United Bank and Credit Industriel et Commercial took us$ 10 million apiece as senior managers.

Five other banks joined as managers, four of them taking us$ 5 million each. These were Chong Hing Bank, Chang Hwa Commercial Bank, Dah Sing Bank and First Commercial Bank. Banco Weng Hang joined with us$ 8 million. The five-year deal is split into a us$ 1.3 billion amortising loan and a us$ 100 million revolving credit. It has an average life of 4.8 years.

The loan pays arrangers an all-in of 483 bp via a 160 bp fee for commitments of us$ 35 million or more. It pays a margin of 450 bp over Libor and a commitment fee at 40 percent of the margin. The Macau Studio City project on the Cotai Strip is expected to cost more than us$ 2.5 billion.

Melco last tapped the loan markets in May 2011 when it borrowed us$ 1.2 billion via a five-year dual-tranche financing comprising an us$ 800 million term loan and a us$ 400 million revolving credit. That loan paid an initial margin of 250bp over Libor.

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