Malaysian gaming and plantations conglomerate Genting Bhd has issued MYR3.0-billion (US$739.2-million) in medium-term notes (MTNs) under a MYR5.0-billion unrated medium-term note programme of its unit Genting Vista Bhd.
The parent said in a Tuesday filing to Bursa Malaysia that the proceeds would be used to redeem other medium-term notes issued by Genting RMTN Bhd, a wholly-owned subsidiary. The filing said the latter notes – issued between last November and early December – had been used to “part finance” the acquisition of ordinary shares in another Genting unit, global casino operator Genting Malaysia Bhd, “pursuant to the takeover offer” by Genting Bhd for Genting Malaysia, and an unrealised effort to take the latter private.
Genting’s MYR2.35 per share privatisation offer for Genting Malaysia closed on December 1. The group secured under 73.5 percent of Genting Malaysia’s shares, below the 75-percent requisite threshold to withdraw the company’s listing status. Thus, Genting Malaysia continues to be listed on Bursa Malaysia.
The newly-issued notes, with a tenure of one to five years, carry interest set at the three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) plus 1.80 percent.
They are under what is known as Genting Vista’s Series 1 MTN issuance. Genting Vista is a special-purpose vehicle of the Genting parent.
Affin Hwang Investment Bank Bhd and AmInvestment Bank Bhd are the lead managers on the new issuance.
The to-be-redeemed Genting RMTN notes were part of a MYR10-billion programme for medium-term notes guaranteed by the Genting parent.
