Malaysia-based conglomerate Genting Bhd’s indirect wholly-owned subsidiaries Resorts World Las Vegas (RWLV) and RWLV Capital have priced their offering of $1 billion bonds to finance the construction of the Resorts World Las Vegas casino and integrated resort with a 4.625% coupon rate.
The 10-year notes due in 2029 are expected to be listed on the Offical List of the Singapore Exchange Securities Trading Ltd.
In a stock filing with Bursa Malaysia, Genting said the net proceeds from the bond sale will be used to fund remaining costs associated with the design, development, construction, equipping, financing and opening of the Resorts World Las Vegas casino in Clark County, Nevada. It will also be used for working capital and other general corporate purposes.
“It is contemplated that concurrently with the issuance of the notes, RWLV will enter into US$1.6 billion senior secured credit facilities, comprising a US$400 million term loan facility and a US$1.2 billion revolving credit facility,” said Genting.
Resorts World Las Vegas is currently under construction and is expected to be completed by end of 2020.
“The notes will have the benefit of various funding agreements to be provided by Genting Overseas Holdings Ltd, a direct wholly-owned subsidiary of GENT (Genting Bhd). The notes will also have the benefit of a keepwell deed to be provided by GENT. S&P Global Ratings has assigned a preliminary issue rating of BBB+ to the notes, whilst Fitch Ratings, Ltd has assigned an expected rating of A-(EXP) to the notes,” said Genting.
Citigroup Global Markets Inc, Barclays Bank PLC and JP Morgan Securities LLC are the joint global coordinators for the offering, and together with BNP Paribas Securities Corp, DBS Bank Ltd, SMBC Nikko Securities America Inc, Fifth Third Securities Inc and KeyBanc Capital Markets Inc are the joint bookrunners for the offering.
Malayan Banking Bhd and Oversea-Chinese Banking Corp Ltd are the joint lead managers for the offering, according to Genting Bhd.
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