SkyCity Entertainment Group Ltd opened its $50 million share purchase plan today, following completion of its $180 million institutional placement last Thursday.
Closing date for the share purchase plan is Friday 3 July.
The placement of 72 million new, fully paid ordinary shares was fully subscribed at the fixed price of $2.50/share. That was a 6.4% discount to the $2.67 closing price on Tuesday and a 10.4% discount to the volume-weighted average price for the previous 5 days.
SkyCity sized the placement (78% of the total equity-raising) to match the proportion of its shares owned by institutional investors (79%). No shares were allocated to investors that weren’t already shareholders.
The placement will be settled tomorrow in Australia and on Wednesday on the NZX.
SkyCity has also reviewed all its debt facility. It has $160 million of new debt facilities and has secured covenant waivers/relief & extensions to upcoming debt maturities.
The company closed its properties in late March due to the Covid-19 pandemic and reopened its New Zealand properties (excluding the Queenstown Wharf casino) from 14 May. It expects to reopen the Adelaide Casino in the next week.
The company now expects group normalised ebitda (earnings before interest, tax, depreciation & amortisation) for the year to 30 June to be in the range of $185-205 million, group reported ebitda to be in the range of $440-480 million, normalised net profit after tax to be in the range of $52-67 million and group reported net profit after tax to be in the range of $330-360 million.
Impacts complicating annual comparisons include Covid-19, the NZICC fire & Auckland carpark concession sale. The company also expects to partially impair the investment in Adelaide Casino – a non-cash charge which will reduce its intangible asset value (casino licence) of $A283 million.
Attribution: Company releases.