Melco International announces proposed Studio City IPO

Asian casino operator, Melco International Development Limited, has announced the impending launch of an initial public offering (IPO) on the New York Stock Exchange because of its Studio City International Holdings Limited subsidiary.

Paying down debts:

The Hong Kong-recorded firm utilized a Wednesday filing (pdf) to reveal that it hopes the action involving a 28.75 million shares will earn between $301.88 million and $359.38 million which its weak subsequently plans to use to be able to ‘obtain newly-issued stocks ’ in its own MSC Cotai Limited subsidiary and consequently repay ‘certain existing indebtedness. ’

Company to stay as majority shareholder:

Studio City International Holdings Limited is the enterprise behind the Hollywood-themed Studio City Macau incorporated casino resort in the Cotai Strip area of Macau, which opened in 2015 at a cost of about $3.2 billion, with Melco International Development Limited due to stay its majority shareholder post-listing via its Melco Resorts and Entertainment Limited vehicle.

The filing from Melco International Development Limited clarified that it currently owns approximately 60 percent of Studio City International Holdings Limited together with the remaining interest controlled by New Cotai Holdings LLC, which is an entity controlled by American investment firms Oaktree Capital Management LP and Silver Point Capital LP. Following the conclusion of the IPO, it announced that the pair plans to hold ‘roughly 88.9%’ of the newly-issued stocks and stay the ‘majority shareholder’ of this floated concern.

Melco International Development Limited’s filing read…

“The organization ’s indirect interest in Melco Resorts [and Entertainment Limited] will not be affected by the global offering and the company will stay as Melco Resorts [and Entertainment Limited’s] majority shareholder.

Latest American listing:

Melco Resorts and Entertainment Limited is already recorded in the United States via the Nasdaq bourse while Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Incorporated and Morgan Stanley and Company International are serving as the book-runners and agents for the Studio City International Holdings Limited float.

Float expects approval:

The submitting from Melco stated that the IPO will only begin once the New York Stock Exchange grants its approval along with the United States Securities and Exchange Commission regulator admits ‘successful ’ the revised enrollment statement submitted by Studio City.

Should either these not occur, the firm proclaimed it will offset ‘the proposed distribution in specie’, which would see it pay present investors around 1.5percent of the float’s gross proceeds. It detailed that this amount is anticipated to range from $4.53 million to $5.39 million before declaring that lsquo;the details of the proposed distribution in specie still haven’t been finalized. ’