New Zealand’s SkyCity Entertainment Group has had to do what it needs to remain financially stable as a result of the global pandemic and has announced a US$90 million bond offer that will be used to keep the casino operational. They also have the option of adding another US$36 million oversubscription in an attempt to bolster liquidity.
This bond comprises of a 6-year unsecured, unsubordinated fixed-rate bond that will be due by 21 May 2027. The bond is expected to receive a “BBB-” rating by S&P Global.
The announcement of the bind came with an update on SkyCity, indicating the resilient performance of SkyCity Auckland. This is primarily a result of its electronic gaming sector. SkyCity Adelaide has been reported as having consistent performance in March and April. It also received an AU$330 million revamp at the end of 2020.
What the announcement lacked was exact figures to support the performance of the various properties, although they have recorded growth within its online gaming business, SkyCity Online casino. In mid-February, the online platform had 24,400 active customers, which increased to 38,000 at the end of April.
The COVID-19 has b=made operations unpredictable, resulting in lower-than-normal profits for the business. So much so that SkyCity has reported a staggering76.1% year-on-year decline in net profit from June to December 2020, with the group’s revenue down 37.7%.
This bond offer should give the group the assistance needed to recover from the COVID-19 blow and remain operational.
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