SkyCity may sell $125M of bonds, following repayment of capital notes

Wednesday 19th August 2015

SkyCity Entertainment Group, New Zealand's only listed casino company, may sell as much as $125 million of bonds to repay bank debt.

The Auckland based company is considering offering $100 million of unsubordinated, unsecured, redeemable, fixed-rate, seven year bonds, with the potential for $25 million of oversubscriptions, it said in a statement.

SkyCity said last week that while it currently had enough debt funding to meet expected funding requirements until at least the start of 2018, it was investigating a potential New Zealand retail bond issue following the repayment of capital notes in May.

"The proceeds of the offer are intended to be used to reduce the drawings on SkyCity's bank facilities," the company said in today's statement. "The offer, if made, would form part of SkyCity's ongoing capital management strategy."

The casino company is seeking preliminary indications of interest. It intends to set the interest rate for the bonds through a bookbuild process on Sept. 2, with the offer expected to open Sept. 3.

The joint lead managers of the offer are Westpac Banking Corp, ANZ Bank New Zealand, Deutsche Craigs and First NZ Capital.

The company's shares slipped 0.2 percent to $4.10, and have gained 5.9 percent so far this year.

BusinessDesk.co.nz

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