HONG KONG, Jan 24 (BASIS POINT) - Melco Crown Entertainment Ltd on Friday will sign the US$1.4 billion syndicated loan backing its Macau Studio City project, banking sources said.
The loan was led by eight mandated lead arrangers and bookrunners, including Bank of China Macau, Industrial & Commercial Bank of China Macau, ANZ, Bank of America Merrill Lynch, Citigroup, Deutsche Bank, Credit Agricole CIB and UBS.
BOC and ICBC hold US$300 million and US$250 million, respectively, while CA-CIB and UBS hold US$65 million and US$60 million. The rest ended up with US$75 million each.
Sixteen other banks joined in general syndication, ending up with US$425 million of the deal. Bank of Communications Macau came in with US$100 million as MLA, while six joined as lead arrangers.
These were Banco Nacional Ultramarino (US$65 million), Bank of East Asia Macau (US$40 million), National Australia Bank (US$40 million), Bank of Nova Scotia (US$30 million), Tai Fung Bank (US$21 million) and Wing Lung Bank (US$21 million).
Joining as arrangers were Banco Espirito Santo (US$40 million) and China Citic Bank (US$20 million). Cathay United Bank and Credit Industriel et Commercial took US$10 million apiece as senior managers.
Five other banks joined as managers, four of them taking US$5 million each. These were Chong Hing Bank, Chang Hwa Commercial Bank, Dah Sing Bank and First Commercial Bank. Banco Weng Hang joined with US$8 million.
The five-year deal is split into a US$1.3 billion amortising loan and a US$100 million revolving credit. It has an average life of 4.8 years.
The loan pays arrangers an all-in of 483 bp via a 160 bp fee for commitments of US$35 million or more. It pays a margin of 450 bp over Libor and a commitment fee at 40 percent of the margin.
The Macau Studio City project on the Cotai Strip is expected to cost more than US$2.5 billion.
Melco last tapped the loan markets in May 2011 when it borrowed US$1.2 billion via a five-year dual-tranche financing comprising an US$800 million term loan and a US$400 million revolving credit.
That loan paid an initial margin of 250bp over Libor.
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