THE M3: SCC OPENING DATE; MACAU STUDIO CITY DEBT; OKADA; CHINESE BANK LENDING

The Macau Metro Monitor, January 19, 2012 

 

 

SANDS COTAI CENTRAL TO OPEN BETWEEN 22 AND 27 MARCH Macau Business

According to HSBC, the 1st phase of Sands Cotai Central will open between March 22 and 27.  LVS expects to open a 2nd casino by 3Q 2012. 

 

MELCO CROWN EYES $2 BLN DEBT FOR NEW PROJECT Reuters

MPEL is looking for raise $2 billion for its Macau Studio City project.  The debt funding will feature a loan-and-bond combo with the loan expected to be for around US$1.25BN and the US dollar bond for the remainder, according to another source.  The borrower is in discussions with banks for the loan financing and is seeking underwritten commitments.

 

Melco's last visit to the loan markets was in May 2011 when it raised US$1.2BN through a dual-tranche financing comprising of an US$800MM term loan and a US$400MM revolver (deal priced all-ins of 208-308bp over LIBOR). The term loan amortizes to 50% and has a two-year grace period. The blended average life is 4.1 years.

 

OKADA SEEKING THREE BOARD SEATS AT WYNN RESORTS Macau Business, Intelligence Macau

Kazuo Okada, has nominated three candidates to Wynn Resorts' board.  According to Intelligence Macau, three current directors are up for reelection at the 2012 shareholders' meeting - Linda Chen (President of Wynn International Marketing and COO of Wynn Macau), Marc Schorr (COO of Wynn Resorts), and John A. Moran.   

 

CHINESE OFFICIALS SAID TO WEIGH EASING CONSTRAINTS ON BANKS BusinessWeek

China is allowing the nation’s five biggest banks to increase 1Q lending and weighing a plan to relax capital requirements as economic growth cools.  The PBoC will let the larger lenders increase new loans by a maximum of about 5% from a year earlier, according to two people at state lenders who have knowledge of the matter.  The banking regulator is delaying implementing the most stringent capital adequacy ratios and may lower risk weightings for loans to small businessmen and companies, four people said separately.

 

The central bank also said that 30% of full-year lending should be in 1Q, with the same amount in the second and 20% in each of the final two quarters, the people said.  The risk weighting on personal operating loans given to small businessmen may be cut to 75% from the current 100%, while the ratio on loans to small and micro-sized firms would be lowered to 50% from 75%, according to two people.