Content Writer: Janice Chew • Tuesday, 26/08/2026 - 16:43:33 - PM
Melco Resorts & Entertainment is taking another step to manage its debt maturities, with subsidiary Melco Resorts Finance Limited set to fully redeem US$600 million of 5.625% senior notes due in 2027.
According to a notice filed with the U.S. Securities and Exchange Commission, the notes will be redeemed on 23 September 2026 at 100% of their principal value, together with accrued and unpaid interest and any applicable additional amounts. Interest on the notes will stop accruing after the redemption date, provided payment is completed as scheduled.
Part of a Wider Debt Management Strategy
The latest move follows several refinancing and redemption exercises across the Melco group.
In May, Studio City issued US$300 million of 6.125% senior secured notes due 2031, with proceeds and other funds used to refinance US$350 million of notes due in 2027.
Studio City Finance also redeemed US$165 million of its 6.5% notes due 2028 in July, leaving US$335 million outstanding.
Melco Resorts Finance had previously issued US$500 million of 6.5% senior notes due 2033 in September 2025, using the proceeds largely to address notes due in 2026.
Liquidity Provides Flexibility
The redemption comes while Melco maintains a sizeable liquidity position.
As of 30 June 2026, the group reported approximately US$2.8 billion in available liquidity, including around US$1 billion of consolidated cash. Its revolving credit facilities were also extended to June 2031 and increased to approximately US$2.8 billion.
Geoff Davis, Executive Vice President and CFO of Melco Resorts & Entertainment, remarked during the company's second-quarter earnings call:
“Our liquidity position remains robust.”
He added that the expanded revolving facilities give Melco greater financial flexibility when considering upcoming debt maturities.
What It Means
Redeeming the US$600 million notes removes a significant 2027 maturity from Melco Resorts Finance's debt schedule.
More importantly, the move fits a broader pattern: Melco has been actively refinancing, extending maturities and selectively redeeming debt across the group rather than waiting for obligations to reach maturity.
This financial flexibility remains important as Melco continues investing across its integrated resort portfolio in Macau, the Philippines, Cyprus and Sri Lanka, while navigating softer second-quarter operating performance. Melco reported Q2 2026 operating revenue of US$1.25 billion, down approximately 6% year-on-year, with Adjusted Property EBITDA of US$303.8 million.
For the integrated resort sector, the latest redemption is therefore less about expansion and more about strengthening the financial foundation behind future growth.