GGRAsia – Okada Manila parent has investor nod on 80pct of note swap

Okada Manila parent has investor nod on 80pct of note swap

Oct 27, 2020 Newsdesk Industry Talk, Latest News, Philippines

Japan’s Universal Entertainment Corp, parent of the Okada Manila casino resort (pictured) in the Philippine capital Manila, was unable to generate 100 percent consent from investors regarding its exercise to exchange US$600 million in notes due to in 2021, for the same principal amount with a new maturity date of December 11, 2024.

It nonetheless received so-called “super consent” via valid tenders and consent regarding 80.3 percent of the notes, amounting to US$482 million, at 8.5 percent annual interest, and with such interest payable with effect from June 11 this year. Universal Entertainment said so in an October 23 filing to Jasdaq.

The guarantors of the notes are Tiger Resort Asia Ltd, and Tiger Resort, Leisure and Entertainment Inc, two entities associated with the Okada Manila property.

No cash proceeds are to result from the exchange, which is due to take place on Thursday (October 29).

Universal Entertainment added it would “make amendments” and inform the bourse, regarding the US$118 million balance on the existing notes and which are still due on December 11, 2021.

The firm also gave an update regarding an exercise for the additional issuance of US$135 million in principal amount of notes due on December 11, 2024, being pursued as a “private placement”.

Earlier this month, Universal Entertainment said it was increasing to US$135 million, from US$100 million, the maximum amount of note issuance under its additional offer.

Such notes will also bear 8.5 percent annual interest payable from June 11 this year, and mature on December 11, 2024. The guarantors of the additional notes are also Tiger Resort Asia Ltd, and Tiger Resort, Leisure and Entertainment Inc.

The notes are due to be issued on Thursday, and will be used for “general corporate purposes,” said Universal Entertainment in its statement to Jasdaq.

Okada Manila had been closed since mid-March, along with other Manila casino venues, due to Covid-19 in the Philippines.

In early September, Universal Entertainment had announced that Okada Manila was reopening, in line with permission granted by the country’s casino regulator, though at an initial 30 percent gaming capacity.