BEIJING, Feb. 16 /CNW/ - Melco China Resorts (Holding) Limited (TSXV: MCG) ("Melco China Resorts" or the "Company"), is pleased to announce that it has repaid the RMB120 million (C$18.6 million) principal loan amount due to Harbin Bank on or before February 15th, 2010 and has arranged a new loan facility of RMB150 million (C$23.2 million). The new loan facility consists of three new bank loans with Harbin Bank each of RMB 120 million (C$18.6 million), RMB 16 million (C$2.5 million), and RMB 14 million (C$2.1 million), with each loan secured by certain assets and land use rights at the Sun Mountain Yabuli Resort in Heilongjiang Province, China. Each loan carries a two-year term with a maturity date of February 9th, 2012 and a fixed annual interest rate of 5.94 percent to be paid quarterly on March 20th, June 20th, September 20th and December 20th of each year.
The new Harbin Bank loans were facilitated by a short term bridge loan of RMB 74 million (C$11.5 million) provided by Wisecord Holdings Limited ("WHL") the proceeds of which are in addition to the RMB 96 million (C$14.9 million) on deposit with Melco China Resorts as part of the previously announced Private Placement. The bridge loan has a term of 60 days with a loan fee of 4.6% for each 30 day period on the principal amount drawn down and will be immediately repaid upon receipt of funds by the Company from the new Harbin Bank loans.
Proceeds from the Harbin Bank loans will be used for construction payments and general corporate purposes.
"We are very pleased to have this continuing relationship with Harbin Bank," stated Graham Kwan, CEO of Melco China Resorts. "Combined with the recently announced capital injection from WHL, our financial position has greatly improved with this renewal now in place."
Conversion from Renminbi (RMB) to Canadian dollars is approximate only based on RMB 6.5 to C$1.00.
About Melco China Resorts
Melco China Resorts is the premier developer of four season destination ski resorts in China. Melco China Resorts is transforming existing China ski properties into world-class, four seasons luxury mountain resorts with excellent real estate investment opportunities for discerning buyers. In February 2009 the Company's Yabuli Resort was awarded Best Resort Makeover in Asia by TIME Magazine. Melco China Resorts' leadership team boasts a proven record of resort development success both internationally and in China. www.melcochinaresorts.com
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FORWARD LOOKING INFORMATION
Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, and actual results may vary from the forward-looking information. Implicit in this information are assumptions regarding future operations, plans, expectations, anticipations, estimates and intentions, such as the plans to develop the ski resorts in China and the ability of the Company to satisfy the conditions to closing of the private placement with Wisecord Holdings Limited. These assumptions, although considered reasonable by Melco China Resorts at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of Melco China Resorts are subject to a number of risks and uncertainties, including general economic, market and business conditions, uncertainty relating to land use rights, adverse industry events for the ski and real estate industries, Melco China Resorts ability to make and integrate acquisitions, the requirements of recent Chinese regulations relating to cross-border mergers and acquisitions, the inability to obtain required approvals or approvals may be subject to conditions that are unacceptable to the parties, changing industry and government regulation, as well as Melco China Resorts ability to implement its business strategies, dispose of assets or raise sufficient capital, seasonality, weather conditions, competition, currency fluctuations and other risks, and could differ materially from what is currently expected as set out above.
Forward-looking information contained in this press release is based on current estimates, expectations and projections, which Melco China Resorts believes are reasonable as of the date of this press release. Melco China Resorts uses forward-looking statements because it believes such statements provide useful information with respect to the operation and financial performance of Melco China Resorts, and cautions readers that the information may not be appropriate for other purposes. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Melco China Resorts may elect to, it does not undertake to update this information at any particular time.
SOURCE MELCO CHINA RESORTS (HOLDING) LIMITED
For further information: For further information: Melco China Resorts, Investor Relations, Kevin O'Connor or Ali Mahdavi, Tel: (416) 962-3300, Fax: (416) 962-3301, Email: email@example.com