What is Melco Crown Going To Do With $400 M?
Melco Crown has offered up $400M in ADS, at 3 shares per. The official word on plans for the cash is capex, capital, debt repayment or petty cash.
$400M is quite a bit more than what would would be needed to dot the 'i's and cross the 't's' at CoD, let alone buy office equipment and change the signage at Crown Taipa. WYNN raised about half that a month ago, raising a million eyebrows at a possible acquisition of Bellagio.
But what are they really going to do with that loot? Starter funds to purchase a chunk of Las Vegas Sands' stalled pipeline? Cash to be spent relinquishing MGM Mirage of MGM Grand Macau? Use it to pay down debt so they can raise even more debt after City of Dreams opens?
One thing is for sure, the gigantic boomerang that is Melco Crown is has just about turned the bend and is on the precipice of zooming right at our collected skulls. This could get very interesting.
City of Dreams opens in approximately three months.