Melco Crown sells $600 million of high-yield bonds

The Macau casino operator taps into a gaming-focused investor base in the US to sell $600 million of eight-year bonds with a 10.25% coupon, despite the volatility in global debt and equity markets.

New York-listed Melco Crown Entertainment, which operates casinos and entertainment resorts in Macau, has sold $600 million of new eight-year high-yield notes. The deal priced on Wednesday through MCE Finance, which is a wholly owned subsidiary of Melco Crown.

The Reg-S144A bonds carry a 10.25% coupon and were re-offered at 98.671 to yield a slightly wider 10.5%. This is equivalent to a spread of Treasuries plus 727bp. The maturity date has been set for May 15, 2018, but the...

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