Japan’s Universal Entertainment Corp, parent to the promoter of the Okada Manila casino resort (pictured) in the Philippine capital, is to place privately outside Japan, up to US$143-million in additional notes, carrying 8.5 percent interest and due in December 2024.
The issuance is to take place on Friday (July 2), and the issue price will be 102 percent of the principal amount, said the firm in a Friday release.
Proceeds will be used for the early redemption of US$118-million in principal amount of the group’s existing notes due in December this year, as stated in a June 11 announcement.
The actual sum involved in the redemption will be just under 106.6 percent of the principal amount, i.e., nearly US$125.8 million, said Universal Entertainment.
The guarantors on the additional notes are Tiger Resort Asia Ltd, and Tiger Resort, Leisure and Entertainment Inc, two Universal Entertainment entities linked to the Okada Manila casino venture.
The marketing agent for the private placing is United States-based brokerage Union Gaming Securities LLC.
A June 15 memo from Fitch Ratings Inc, said that Universal Entertainment tapping access to between US$140 million and US$150 million from its existing US$617 million in 8.5 percent senior notes was seen a “credit positive” as it would “alleviate short-term refinancing and liquidity pressure”.
Gross gaming revenue at Okada Manila fell 41.0 percent year-on-year in the first quarter of 2021, Universal Entertainment said in April. Such GGR was nearly PHP5.10 billion (US$1.05 billion), compared with PHP8.64 billion in the first three months of 2020.
A number of major commercial casino operators in the Philippine capital, including Okada Manila, suspended their operations from late March this year, as part of pandemic countermeasures in Metro Manila.
Metro Manila’s casinos are “currently allowed to operate at limited capacity,” said in late May the country’s gaming regulator, the Philippine Amusement and Gaming Corp, in response to an enquiry from GGRAsia. Nonetheless, Metro Manila is to remain under a general community quarantine with “some restrictions,” until June 30.
