Melco Resorts & Entertainment Limited (Nasdaq: MLCO), a
developer, owner and operator of integrated resort facilities in
Asia and Europe, today announces that on June 23, 2022, Melco
Resorts (Macau) Limited (“Melco Resorts Macau”), a subsidiary of
the Company, and Wynn Resorts (Macau) Limited (“Wynn Resorts
Macau”) entered into an Amendment Agreement to the Subconcession
Contract pursuant to which the gaming subconcession of Melco
Resorts Macau, which is due to expire on June 26, 2022, was
extended to December 31, 2022 (the "Extension Agreement"), which
coincides with the extended expiration date of all the other
concessions and subconcessions.
Melco Resorts Macau will pay the Macau
government MOP47 million (equivalent to approximately US$5.8
million) upon signing of the Extension Agreement as premium for
such extension.
Melco Resorts Macau will also submit a bank
guarantee in an amount of not less than MOP820 million (equivalent
to approximately US$101.4 million) to the Macau government within
three months from the date of signing of the Extension Agreement to
guarantee the satisfaction of any labor liabilities upon expiry of
the subconcession. The Macau government may require an increase in
the amount of such guarantee, depending on the actual number of
employees employed by Melco Resorts Macau.
Under the Extension Agreement and in accordance
with current applicable Macau law, Melco Resorts Macau also
acknowledges that the gaming areas, gaming support areas and the
gaming equipment of Altira Casino, City of Dreams Casino and Studio
City Casino, as agreed with the Macau government, will revert to
the Macau SAR, without compensation and free and clear from any
charges or encumbrances at the expiration of the subconcession. In
addition, on June 23, 2022, Melco Resorts Macau and each of Altira
Resorts Limited, COD Resorts Limited and Studio City Developments
Limited, the subsidiaries of the Company holding the land lease
rights for the properties on which Altira Casino, City of Dreams
Casino and Studio City Casino (the “Land Concessionaires”) are
located, respectively, executed an undertaking in favor of the
Macau government pursuant to which Melco Resorts Macau and the
respective Land Concessionaire committed to sign the documents
required by the Macau government so that the Altira Casino, City of
Dreams Casino and Studio City Casino revert to the Macau SAR in
accordance with law. The final terms of such reversion are subject
to the execution of a reversion deed or similar instrument in favor
of the Macau government. Melco Resorts Macau and Studio City
Entertainment Limited have also amended the agreement under which
Melco Resorts Macau operates the Studio City Casino to align such
agreement with the newly enacted amendments to the gaming law in
Macau. In addition, certain conditions imposed by the Macau
government relating to the previously existing agreement, including
in relation to shareholding requirements for certain direct and
indirect shareholders of Studio City Entertainment Limited, are no
longer applicable.
“We are pleased to see a formal extension of our
subconcession and appreciate the Macau government’s efforts to
ensure a coordinated process. We believe the actions today set a
clear pathway towards a smooth transition ahead of the tender for
the new concessions. We are committed to participating in the
upcoming tender and remain aligned with the Macau government’s
vision to further the development of Macau and its economy.”
Safe Harbor Statement
This press release contains forward-looking
statements. These statements are made under the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Melco Resorts & Entertainment Limited (the “Company”) may
also make forward-looking statements in its periodic reports to the
U.S. Securities and Exchange Commission (the “SEC”), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company’s beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties, and a number
of factors could cause actual results to differ materially from
those contained in any forward-looking statement. These factors
include, but are not limited to, (i) the global COVID-19 outbreak,
caused by a novel strain of the coronavirus, and the continued
impact of its consequences on our business, our industry and the
global economy, (ii) risks associated with the newly adopted gaming
law in Macau and its implementation by the Macau government and our
ability to obtain a new concession under the public tender to be
conducted by the Macau government and the terms and conditions of a
new concession, if we are granted one, (iii) growth of the gaming
market and visitations in Macau, the Philippines and the Republic
of Cyprus, (iv) capital and credit market volatility, (v) local and
global economic conditions, (vi) our anticipated growth strategies,
(vii) gaming authority and other governmental approvals and
regulations, and (viii) our future business development, results of
operations and financial condition. In some cases, forward-looking
statements can be identified by words or phrases such as “may”,
“will”, “expect”, “anticipate”, “target”, “aim”, “estimate”,
“intend”, “plan”, “believe”, “potential”, “continue”, “is/are
likely to” or other similar expressions. Further information
regarding these and other risks, uncertainties or factors is
included in the Company’s filings with the SEC. All information
provided in this press release is as of the date of this press
release, and the Company undertakes no duty to update such
information, except as required under applicable law.
About Melco Resorts & Entertainment
Limited
The Company, with its American depositary shares
listed on the Nasdaq Global Select Market (Nasdaq: MLCO), is a
developer, owner and operator of integrated resort facilities in
Asia and Europe. The Company currently operates Altira Macau
(www.altiramacau.com), an integrated resort located at Taipa, Macau
and City of Dreams (www.cityofdreamsmacau.com), an integrated
resort located in Cotai, Macau. Its business also includes the
Mocha Clubs (www.mochaclubs.com), which comprise the largest
non-casino based operations of electronic gaming machines in Macau.
The Company also majority owns and operates Studio City
(www.studiocity-macau.com), a cinematically-themed integrated
resort in Cotai, Macau. In the Philippines, a Philippine subsidiary
of the Company currently operates and manages City of Dreams Manila
(www.cityofdreamsmanila.com), an integrated resort in the
Entertainment City complex in Manila. In Europe, the Company is
currently developing City of Dreams Mediterranean
(www.cityofdreamsmed.com.cy) in the Republic of Cyprus, which is
expected to be the largest and premier integrated destination
resort in Europe. The Company is currently operating a temporary
casino, the first authorized casino in the Republic of Cyprus, and
is licensed to operate four satellite casinos (“Cyprus Casinos”).
Upon the opening of City of Dreams Mediterranean, the Company will
continue to operate the satellite casinos while operation of the
temporary casino will cease. For more information about the
Company, please visit www.melco-resorts.com.
The Company is strongly supported by its single
largest shareholder, Melco International Development Limited, a
company listed on the Main Board of The Stock Exchange of Hong Kong
Limited and is substantially owned and led by Mr. Lawrence Ho, who
is the Chairman, Executive Director and Chief Executive Officer of
the Company.
For the investment community, please
contact:Jeanny Kim Senior Vice President, Group
TreasurerTel: +852 2598 3698Email: jeannykim@melco-resorts.com
For media enquiries, please contact:Chimmy
LeungExecutive Director, Corporate Communications Tel: +852 3151
3765Email: chimmyleung@melco-resorts.com
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