Crown raising US$305 mln to finance expansion

Mar 17, 2015 Newsdesk Latest News, Top of the deck, World  

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Casino operator Crown Resorts Ltd is planning to raise AUD400 million (US$305 million) through the sale of subordinated notes to finance new projects. The notes will be listed on the Australian Securities Exchange (ASX) and the offer should open on March 25, the company said in a filing on Tuesday.

The proceeds will be used for general corporate purposes “including financing Crown Sydney, Crown Towers Perth and other anticipated growth projects,” the firm added, referring to new infrastructure projects.

The notes are due for repayment in April 2075, though Crown has the right to redeem the debt any time from 2021.

Crown, controlled by billionaire James Packer, is a joint venture partner in the Macau and Philippines casino operator Melco Crown Entertainment Ltd.

Crown’s development commitments spread across Australia, Asia and the United States. The casino operator has ambitions to move into Las Vegas, where it acquired a site in August last year and plans to invest about US$1.9 billion in a new casino resort.

In Australia, Crown is part-way through constructing a new hotel (pictured in a rendering) at its Perth casino resort, with targeted completion by December 2016. It has also committed to building an AUD1.5 billion casino at Barangaroo, a regeneration zone on Sydney’s waterfront.

The company has also entered a tender for a new casino in Brisbane, in partnership with Chinese property developer Greenland Holding Group Co Ltd.

In Tuesday’s filing, the firm said the planned issue of new notes follows the successful sale of subordinated notes in September 2012.

“Crown has an exciting pipeline of future development projects that will enhance Crown’s position as one of the leading operators of integrated resorts globally,” Ken Barton, chief financial officer of Crown, said in a statement.

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