GGRAsia – Imp Pac raising US$51mln for phase one of Saipan casino

Imp Pac raising US$51mln for phase one of Saipan casino

Aug 10, 2017 Newsdesk Latest News, Top of the deck, World

Imperial Pacific International Holdings Ltd, developer of a casino project on the Pacific island of Saipan, is seeking to raise an aggregate of HKD400 million (US$51.2 million) from two bond placements.

The company will use the net proceeds of the exercise – after deducting commissions and other estimated expenses – “for the development of phase one of the Saipan project,” it said in a Wednesday filing to the Hong Kong Stock Exchange.

Imperial Pacific has the right to an exclusive casino licence on Saipan, the main island of the Commonwealth of the Northern Mariana Islands, a United States jurisdiction. The company began on July 6 gaming operations at its casino resort on the Pacific island of Saipan. Previously it had been running an interim facility called Best Sunshine Live.

According to Wednesday’s filing, the company will be making two separate bond placements: the first to an aggregate amount of HKD350 million; and the second to an amount of HKD50 million. The sole placing agent is a firm called Convoy Investment Services Ltd.

The bonds in each of the placements should be placed “to not less than six” independent third parties, said the Hong Kong-listed firm.

Imperial Pacific confirmed to GGRAsia last month that it aims to complete next year the construction of the first guest accommodation at its Imperial Pacific Resort (pictured). Once finished, the hotel would offer 329 suites and 15 villas.

“We target to complete the construction of our villas at the end of January, 2018 and the construction of the hotel suites in August, 2018,” the company noted at the time.

This hotel accommodation is part of what the company terms the “initial gaming facility”, which must include: a 329-room four- or five-star hotel; a gaming area with a total of 14,140 square metres (152,202 sq feet); as well as villas, restaurants, retail and meeting space.

The company said on July 31 that it had reached an agreement with the Saipan authorities to amend its casino licence. Under the new agreement, the so-called “initial gaming facility” should be fully operational by August 31, 2018.

Imperial Pacific’s deadline for completing the property’s phase one has now been pushed back to August 13, 2023. That must include: an 800 room four- or five-star hotel; a US$100 million themed entertainment facility with amphitheatre; as well as additional restaurants, retail and meeting space. Phase one should also comprise an additional 10,000 sq metres of gaming area, said the firm.

The company also stated on July 31 that phase two of the project must now be completed by August 13, 2028. That would include an additional 875 hotel rooms, 185 villas, 7,000 sq metres of gaming area and a 600-seat theatre.