THE M3: MPEL 1.2BN LOAN; SANDS EXPANSION PLANS; BALLY ASIA; TAIWAN

The Macau Metro Monitor, June 8, 2011

 

 

MELCO CROWN SAID TO ALLOCATE $1.2 BILLION LOAN TO 13 LENDERS Bloomberg

According to a source, the loan consists of an $800MM term loan and a $400MM revolving credit facility.  Australia & New Zealand Banking Group Ltd., Bank of America Corp, Bank of China Ltd., Commerzbank AG and Deutsche Bank AG were the five lenders hired to organize the loan.  Bank of China contributed $200MM, while the others each gave $75MM.

 

Banco Nacional Ultramarino SA, Citigroup Inc., National Australia Bank Ltd. and Royal Bank of Scotland Group Plc also put in $75MM for a total interest and fee payment of 208-308bps more than LIBOR, depending on whether they contributed to the term loan or revolver.  Banks contributing $50MM each for a total payment of 204-304bps included Bank of Nova Scotia, China Construction Bank Corp. and Credit Suisse Group AG, while lenders committing to $45MM were Banco Comercial de Macau, Banco Comercial Portugues SA, Commonwealth Bank of Australia, Tai Fung Bank and Wing Lung Bank.  Also, Bank of East Asia Ltd. contributed $25MM.


SANDS SEES STRONG GROWTH IN ASIA, IN TALKS TO EXPAND EMPIRE Reuters

Adelson reiterated LVS's interest in Japan, Korea, Taiwan and Vietnam.  Adelson confirmed plans to build a EuroVegas strip in either Madrid or Barcelona, detailing that it would be twice the size of Macau's Cotai strip with twelve 3,000-room properties.

 

SLOT MAKER BALLY EYES ASIA GROWTH, BETS ON AUSTRALIA Reuters

Bally Technologies said it hopes to secure 18-20% of Lots 5 & 6's slot machines orders when the property opens in 1Q 2012.  Cath Burns, vice-president of Bally's Asia operations said it is also in negotiations with Wynn Macau, SJM, and MGM China for their upcoming Cotai properties, and expects to be given the green light within the year, with around 18-20% of orders for each.

 

Burns mentioned that Australia would be the company's top growth market after Bally received approval to sell machines there in April. Bally aimed to lift its market share in New South Wales to 10% over the next 18 months.  Macau would continue to account for the biggest chunk of Bally's business at about 40% compared with Australia's about 20%.

 

Bally is also talking with MGM and Asian Coast on its Ho Tram Strip project in Vietnam and also with the management of the upcoming Belle Grande Manila Bay casino in the Philippines--both with 18-20% share targets.


TAIWAN CASINOS MIGHT AFFECT MACAU'S OPERATIONS
Macau Daily News

Taiwan recently held a discussion forum on its gaming law, and MPEL, LVS, WYNN were present.  Wynn indicated it wanted Taiwan casinos closer to Taipei and that if they are set up on an offshore island, investment scale and economic benefits will be greatly diminished.

 

It is believed that casinos will only be allowed on offshore islands.  Some scholars believed that Macau will be greatly affected, with Fujian guests being the first to turn to Taiwan.  Meanwhile, Mainland China and Taiwan are about to sign off the individual travel scheme giving Beijing and Shanghai as the two pilot cities to implement the scheme.


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