Japanese conglomerate Universal Entertainment Corp, the parent of the Okada Manila casino resort in the Philippine capital Manila, says it will issue new notes in order to “raise funds for the refinancing” of its existing notes with a principal amount of US$760 million. The existing notes are set to mature in December 2024.
“The company’s board of directors has resolved to commence preparation for the issuance by the company of new U.S. dollar-denominated overseas private placement notes,” stated Universal Entertainment in a Thursday announcement.
The company said U.S.-based CBRE Capital Advisors Inc would be the sole placement agent for the new notes.
“The details of the terms and conditions of the issuance of the new notes will be announced as soon as they have been determined,” added Universal Entertainment.
The Japanese conglomerate said the purpose of the refinancing was to “improve the cashflow structure” and “secure liquidity” by completing an early redemption of the aggregate outstanding amount of the existing notes.
Universal Entertainment also makes pachinko and pachislot machines for the Japanese consumer entertainment market.
In May, Fitch Ratings Inc placed Universal Entertainment on ‘rating watch negative’ because of the company’s US$760-million notes due in December.
“While the company [Universal Entertainment] is in advanced stages of executing a refinancing plan, legally-binding commitments to refinance are not in place,” said Fitch at the time.
The institution further observed: “Fitch will resolve the ‘rating watch negative’ if the company successfully refinances its debt. Any delays in refinancing execution will likely lead to further negative actions.”
