CBRE analysts Colin Mansfield and Connor Park wrote in a Wednesday note on Melco Group's latest funding move: "It is promising to issue debt with a current concession maturity of less than a year, as there is precedent for the Macau government to approach the fund recovery process."

The comment referred to the recent issuance of $750 million in 7.625% unsecured bonds due in 2032, by Melco Resorts & Entertainment Inc's financing unit, Melco Resorts & Entertainment Inc.

Melco Group said the proceeds are being used to pay outstanding amounts under its Emco Nominate One Revolving credit facility. The latter is a Melco Resorts subsidiary.

"We believe our balance sheet will move in our favor as we reduce short-term maturities, increase financial flexibility, and execute on our management commitments to debt reduction," CBRE analysts said.

Moody's Ratings gave Melco Resorts Finance's planned U.S. dollar bill a "Ba3" rating and offered a "stable" outlook.

The company's "number one goal is to continue to reduce debt," Lawrence Hou Yau-Lung, chairman and chief executive of Melco Resorts, said in a call with investment analysts in late February.

"Melco Resorts Finance's financial flexibility has improved to $750 million in issuance, and we estimate approximately $1.75 billion is available under the MCO Nominate Revolver," CBRE said in a note

"Melco Resorts Finance has $1 billion remaining due in June 2025, but given its low coupon, we expect this to be closer to maturity," it added

The agency also provided some commentary on Studio City Finance Ltd, the financing unit of Melco-owned Studio City Casino Resort in the Kotai region of Macau.

Studio City Finance recently announced a US$100 million cash tender offer for 6% unsecured bonds maturing in 2025, and CBRE noted that it will "have approximately $300 million in outstanding bonds on a pro forma basis, further improving its leverage."

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