MACAU, Oct. 19, 2012 (GLOBE NEWSWIRE) -- Melco Crown Entertainment Limited ("Melco Crown Entertainment" or "the Company") (SEHK:6883) (Nasdaq:MPEL), a developer and owner of casino gaming and entertainment resort facilities focused on the Macau market, announces that its 60% owned indirect subsidiary, Studio City Company Limited ("SCC") has entered into a commitment letter (the "Commitment Letter") with a group of mandated lead arrangers for US$1.4 billion senior secured credit facilities (with both Hong Kong dollar and U.S. dollar tranches) which is expected to consist of: (i) a US$1.3 billion equivalent delayed draw term loan facility and (ii) a US$100 million equivalent revolving credit facility, both of which will mature 5 years from the signing of definitive legal documentation.
SCC is a subsidiary of Studio City International Holdings Limited ("SCI"), which is indirectly owned by Melco Crown Entertainment as to 60% and directly owned by New Cotai, LLC ("New Cotai") as to 40%. Melco Crown Entertainment will neither be an obligor nor a guarantor under the senior secured credit facilities. The senior secured credit facilities will be guaranteed by the subsidiaries of SCC and its holding company. The availability of the senior secured credit facilities is subject to satisfaction of certain conditions precedent, among others, the execution of definitive agreements. As such, the transactions contemplated under the Commitment Letter may or may not proceed.
Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, "Securing the commitment from our lead arranging banks represents an important landmark in the completion of our debt financing package for Studio City, which remains on track to open around mid-2015."Over the past few months, we have successfully reached important milestones in relation to Studio City, including the receipt of the revised formal land grant amendment and construction permit from the Macau Government, which enabled us to recommence construction works in August this year.