Philippine unit of Macau-based Melco Crown Resorts Corp. said on Thursday that they will help their resorts and casino group of companies—MCE Leisure Corp.—through $340-million loan from MCE Investments Ltd. in case of failure from issuing senior notes.
In a statement, MCP said that the $340-million loan called “shareholder loan” will act as a reserve in case MCE Leisure’s issued senior notes declined.
“The shareholder loan is intended to be a back-up facility arrangement and its is currently expected that it will only be utilized by [MCE Leisure] in the unlikely event that the senior notes offering consisting of P15 billion aggregate principal amount of 5 percent senior notes due 2019, which was priced on December 19, will not be completed,” the MCP said.
The so-called $340-million shareholder loan, about P15 billion, would be approved by MCP, MCE Holdings Corp. and MCE Holdings No.2.
The MCE Leisure-issued senior notes will be utilized for the capital and debt settlements of the resorts and casino unit, which is said to be released before January 31 next year.
At present, MCE firms are constructing the City of Dreams in Manila pegged at $1.3 billion in partnership with Belle Corp., which was owned by tycoon Henry Sy. The casino is said to open mid-year in 2014.