Melco Crown halves coupon payments with $1 billion bond

Casino company Melco Crown Entertainment tapped the dollar bond market late Tuesday with a $1 billion high-yield bond that enabled the company to halve its coupon payments.

The bonds were issued by Melco Crown Entertainment’s wholly owned subsidiary MCE Finance and the deal was the biggest single-B high-yield bond out of Asia.

The eight-year bonds, which are callable after the third year, priced to yield 5%. The proceeds will be used to buy back its existing $600 million 10.25% senior bonds due 2018 which the company had issued back in 2010. It will also be used for the partial repayment of Rmb2.3 billion 3.75% bonds due 2013...