Melco Resorts Finance Ltd, a fully-owned division of Melco Resorts & Entertainment Ltd, took a significant step on Monday by revealing its agenda to launch an international offering of senior notes. The company, recognized globally in the casino industry, made it clear through a press release that these new notes aim to hold senior obligations status, thereby aligning with Melco Resorts Finance's existing and forthcoming senior indebtedness. Notably, the parent company will not partake as a guarantor for these new notes, a strategic move that highlights their approach to balance financial independence with market opportunities.
New Notes and Conditional Tender Offer Announcements
In addition to the announcement of the new notes, Melco Resorts Finance also disclosed its initiation of a conditional cash tender offer targeting the redemption of its outstanding 5.250-percent senior notes due in 2026. The completion of this tender offer is closely tied to the successful accomplishment of the new notes offering, marking a well-coordinated financial strategy. The gross proceeds drawn from the new notes offering are expected to sufficiently cover the purchase of all existing notes involved in the conditional tender offer. This calculated move ensures the redemption of any residual notes following the tender offer, a strategic financial maneuver before accounting for accrued interest, fees, and expenses.
As reported by CBRE Equity Research, Melco Resorts aims to generate USD 500 million from the new notes to replace their current USD 500-million notes due in 2026. These strategic financial adjustments are designed to be leverage neutral while slightly impacting the free cash flow, according to market analysts.
Future Financial Outlook and Revised Maturity Schedule
CBRE analysts emphasized that the newly issued bonds are timed to mature post the Macau gaming concession expiration—an aspect positively tested in market scenarios. The Melco brand maintains a well-distributed maturity schedule, with no immediate obligations until 2027 post-issuance. At present, the company has USD 1.56 billion outstanding under the revolver, post utilizing it for the USD 1 billion 4.875-percent 2025 maturity. Any expansion in the current offering is anticipated to alleviate the revolver balance, thereby enhancing liquidity for Melco Resorts.
Moody's Ratings recently affirmed Melco Resorts' financial rating at 'Ba3', maintaining a stable outlook, corroborating expectations of improving financial leverage supported by resurgence in Macau's gaming revenue landscape. This detailed outlook presents a forward-looking perspective on the company’s fiscal responsibilities and growth opportunities, reflecting strategic financial decision-making closely attuned to market conditions.
Source: Melco Resorts unit plans to issue new notes, starts cash offer to redeem notes due in 2026, GGRAsia, September 16, 2025.
Posted by Wizard
Sep 17 2025
Sep 17 2025
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