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SkyCity Entertainment Group Limited (NZX: SKC) Market Update and Lodgement of Retail Bond Offer

Friday 30th April 2021

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FY21 Outlook

Despite positive current trading, there is no change to the previous guidance for FY21 with SkyCity expecting Group normalised EBITDA to be above FY20 but still well below pre-COVID-19 and FY19 levels. The operating environment remains unpredictable due to COVID-19 (eg. 11-day property closure at SkyCity Auckland during February and March 2021) and accordingly SkyCity is unable to provide formal earnings guidance at this time.

Based on expected performance and assuming no prolonged property closures before the end of FY21, SkyCity expects to meet its financial covenants for the 30 June 2021 testing period and pay a final dividend consistent with the revised dividend policy announced at the time of its 1H21 results.

Retail Bond Offer

SkyCity has announced an offer of up to NZ$125 million (with the ability to accept oversubscriptions of up to an additional NZ$50 million at SkyCity's discretion) of 6 year, unsecured, unsubordinated, fixed rate bonds maturing on 21 May 2027 to institutional investors and New Zealand retail investors.

The offer is expected to open on 10 May 2021 and close on 14 May 2021. The bonds are expected to be assigned a BBB- rating by S&P Global Ratings.

SkyCity has appointed Westpac Banking Corporation (ABN 33 007 457 141) (acting through its New Zealand branch) (Westpac) as Arranger, and ANZ Bank New Zealand Limited, Commonwealth Bank of Australia (ABN 48 123 123 124) (acting through its New Zealand branch), Craigs Investment Partners Limited, Forsyth Barr Limited, Jarden Securities Limited and Westpac as Joint Lead Managers in relation to the offer.

Full details of the offer are contained in the Product Disclosure Statement (PDS) which was lodged today.

There is no public pool for the offer, with all of the bonds being reserved for clients of the Joint Lead Managers, NZX Participants and other approved financial intermediaries.

Investors can register their interest by contacting a Joint Lead Manager or their usual financial adviser. This offer is being made in accordance with the Financial Markets Conduct Act 2013 and the bonds are expected to be quoted on the NZX Debt Market.

Please see the links below for details:

Cover Letter

Market Release

Product Disclosure Statement

Indicative Terms Sheet

Investor Presentation

Source: SkyCity Entertainment Group Limited

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