SkyCity Entertainment Group Ltd reached agreement yesterday on a new $US150 million issue of US private placement notes.
Investor relations & corporate development manager Ben Kay said the issue represented the penultimate component of SkyCity’s debt funding plan for its capital investment programme in New Zealand & Australia.
The Auckland-based casino & hotel owner said it intended the final component of the programme to be a second New Zealand bond issue, planned for 2018.
The US issue will comprise 2 tranches:
- a $US100 million tranche maturing in March 2025, and
- an $A65.4 million (equivalent to $US50 million) tranche maturing in March 2028.
Mr Kay said the $US tranche had been swapped back to New Zealand dollars to remove all currency exposure to the $US.
He said the issue had been priced at attractive margins relative to recent comparable issues and extended SkyCity’s average debt maturity out to 4.6 years.
The transaction remains subject to execution of final documentation. Upon execution, the notes will be issued in March to coincide with the maturity of $US75 million of existing US private placement debt. The balance of the proceeds will initially be used to repay bank debt.
Attribution: Company release.