NZ Herald nzherald.co.nz 30 Apr, 2021 01:30 am

SkyCity Entertainment to seek $125m in bond issue

SkyCity Entertainment to seek $125m in bond issue
The company can't give formal earnings guidance right now.

Photo / Supplied Casino giant SkyCity Entertainment Group wants to raise $125 million via a bond issue and says earnings will be well below pre-pandemic levels."SkyCity has announced an offer of up to $125 million, with the ability to accept over-subscriptions of up to an additional $50 million at SkyCity's discretion, of six-year, unsecured, unsubordinated, fixed-rate bonds maturing on May 217, 2027 to institutional investors and New Zealand retail investors," it said."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," it said today.It gave an update on the NZ International Convention Centre project, saying there had been no material change to previous guidance on total costs which remain at $750m.

"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," it said.The operating environment remains unpredictable due to Covid, it said, citing the most recent 11-day Auckland closures in February and March.

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