Melco Resorts 20-F: Credit Losses & Financing Costs Detailed

TL;DR

Melco's 20-F shows $2.39B in credit loss allowances and significant financing costs for 2024.

AI Summary

Melco Resorts & Entertainment Ltd. filed its 20-F for the fiscal year ending December 31, 2024. The filing details financial information, including allowances for credit losses of $2,391 and $2,377 for long-term casino accounts receivable as of December 31, 2024, and 2023, respectively. It also reports unamortized deferred financing costs of $27,135 and $15,905 related to the MN1 Revolving Facility for the same periods.

Why It Matters

This filing provides investors with a detailed look at Melco's financial health, specifically its management of credit risks and the costs associated with its financing arrangements.

Risk Assessment

Risk Level: medium — The filing contains detailed financial data that requires careful analysis to assess the company's financial health and associated risks.

Key Numbers

• $2.39B — Allowance for Credit Losses (As of December 31, 2024, reflecting potential unrecoverable casino receivables.)
• $27.14M — Unamortized Deferred Financing Costs (MN1) (Related to the MN1 Revolving Facility as of December 31, 2024.)
• $0.31M — Unamortized Deferred Financing Costs (SCC) (Related to the SCC 2016 Revolving Facility as of December 31, 2024.)

Key Players & Entities

• Melco Resorts & Entertainment LTD (company) — Filer of the 20-F
• Melco Crown Entertainment LTD (company) — Former company name
• Melco PBL Entertainment (Macau) LTD (company) — Former company name
• $2,391 (dollar_amount) — Allowance for credit losses as of December 31, 2024
• $2,377 (dollar_amount) — Allowance for credit losses as of December 31, 2023
• $27,135 (dollar_amount) — Unamortized deferred financing costs for MN1 Revolving Facility as of December 31, 2024
• $15,905 (dollar_amount) — Unamortized deferred financing costs for MN1 Revolving Facility as of December 31, 2023
• $308 (dollar_amount) — Unamortized deferred financing costs for SCC 2016 Revolving Facility as of December 31, 2024
• $278 (dollar_amount) — Unamortized deferred financing costs for SCC 2016 Revolving Facility as of December 31, 2023

FAQ

From the Filing

0001193125-25-059759.txt : 20250321 0001193125-25-059759.hdr.sgml : 20250321 20250321073157 ACCESSION NUMBER: 0001193125-25-059759 CONFORMED SUBMISSION TYPE: 20-F PUBLIC DOCUMENT COUNT: 172 CONFORMED PERIOD OF REPORT: 20241231 FILED AS OF DATE: 20250321 DATE AS OF CHANGE: 20250321 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Melco Resorts & Entertainment LTD CENTRAL INDEX KEY: 0001381640 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] ORGANIZATION NAME: 05 Real Estate & Construction IRS NUMBER: 000000000 STATE OF INCORPORATION: E9 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 20-F SEC ACT: 1934 Act SEC FILE NUMBER: 001-33178 FILM NUMBER: 25758528 BUSINESS ADDRESS: STREET 1: 38TH FLOOR, THE CENTRIUM. STREET 2: 60 WYNDHAM STREET, CENTRAL CITY: HONG KONG. STATE: K3 ZIP: 00000 BUSINESS PHONE: (852) 2598 3600 MAIL ADDRESS: STREET 1: 38TH FLOOR, THE CENTRIUM. STREET 2: 60 WYNDHAM STREET, CENTRAL CITY: HONG KONG. STATE: K3 ZIP: 00000 FORMER COMPANY: FORMER CONFORMED NAME: Melco Crown Entertainment LTD DATE OF NAME CHANGE: 20080723 FORMER COMPANY: FORMER CONFORMED NAME: Melco PBL Entertainment (Macau) LTD DATE OF NAME CHANGE: 20061120 20-F 1 d894115d20f.htm FORM 20-F Form 20-F Table of Contents false FY 0001381640 American depositary shares each representing three ordinary shares As of December 31, 2024 and 2023, the allowances for credit losses of $2,391 and $2,377 as a reduction of the long-term casino accounts receivable, are recorded and included in long-term prepayments, deposits and other assets in the accompanying consolidated balance sheets, respectively. As of December 31, 2024 and 2023, the unamortized deferred financing costs related to the MN1 Revolving Facility of $27,135 and $15,905 are included in long-term prepayments, deposits and other assets in the accompanying consolidated balance sheets, respectively. As of December 31, 2024 and 2023, the unamortized deferred financing costs related to the SCC 2016 Revolving Facility of $308 and $278 are included in long-term prepayments, deposits and other assets in the accompanying consolidated balance sheets, respectively. As of December 31, 2024, the unamortized deferred financing costs related to the SCC 2024 Revolving Facilities of $8,484 is included in long-term prepayments, deposits and other assets in the accompanying consolidated balance sheets. The amount mainly represents management fee expenses for the services provided by the senior management of Melco International and for the operation of the office of Melco’s Chief Executive Officer. As of December 31, 2024 and 2023, the non-current portion of restricted cash included bank time deposits of $125,330 and $124,556, respectively. On December 9, 2022, as required by the Concession, MRM provided a bank guarantee in favor of the Macau government of MOP1,000,000 (equivalent to $124,319) to secure the fulfillment of performance of certain of its legal and contractual obligations, including labor obligations. As stipulated in the bank guarantee contract, the amount of MOP1,000,000 (equivalent to $124,319), or an equivalent amount in other currencies, is required to be held in a cash deposit account as collateral in order to secure the bank guarantee. The bank guarantee will remain in effect until 180 days after the earlier of the expiration or termination of the Concession. As of December 31, 2024 and 2023, Hong Kong dollars (“HK$”) 970,874 (equivalent to MOP1,000,000) held in the cash collateral bank account was translated to $125,056 and $124,284, respectively, and included in the non-current portion of restricted cash in the accompanying consolidated balance sheets. The amount represents the share-based compensation expenses related to the grant of certain share-based awards under the Melco International Share Incentive Plan to an employee of the Company. Further information on the share-based compensation arrangements is included in Note 16. The amount represents the fees to use certain li