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Actionable news in MPEL: Melco Crown Entertainment Limited,

Here's Why Melco Crown (MPEL) Stock is Soaring

NEW YORK (TheStreet) -- Melco Crown Entertainment (MPEL - Get Report) stock is rising by 7.25% to $18.35 in late afternoon trading on Friday, as its Studio City unit asks for an exemption from meeting financial ratios next year and seeks relaxed financial conditions after 2016, sources told Bloomberg.

The casino operator's Studio City unit is asking that banks waive financial conditions for its $1.4 billion loan during 2016, according to Bloomberg.

The unit also hopes that banks will roughly double the maximum total leverage it is allowed, to as much as nine times during the fiscal 2017 first quarter, Bloomberg reports.

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Melco Crown's $1.4 billion in secured loans necessitate that it has 400 casino tables by October 2016 for its new Studio City casino, but the $3.2 billion unit was only given 250 tables, Bloomberg adds. The fewer tables there are, the more difficult it is for casino operators to regain the money they're putting into new resorts.

The company is expected to submit a formal written request on the financial changes next week, Bloomberg notes. More than half of the banks must agree on the changes for...


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