Japan’s Universal Entertainment Corp, parent of the Okada Manila casino resort (pictured) in the Philippine capital Manila, says it will increase to US$135 million, from US$100 million, the maximum amount of note issuance under its additional offer announced earlier in the autumn.
The guarantors of the additional notes are Tiger Resort Asia Ltd, and Tiger Resort, Leisure and Entertainment Inc, two entities associated with the Okada Manila property. The notes are due to be issued on October 29, and will be used for “general corporate purposes,” said Universal Entertainment in a Friday statement to Jasdaq.
The announcement said the additional notes would bear annual interest of 8.5 percent, and mature on December 11, 2024.
The notes are defined as “additional,” relative to an offer by Universal Entertainment of US$600-million in notes due in 2021, privately-placed outside Japan in December 2018, Friday’s statement noted. The company is also seeking consent from eligible holders to extend until December 2024, the maturity date of the US$600-million notes.
In late September, Fitch Ratings Inc affirmed a ‘B’ and ‘outlook negative’ assessment on Universal Entertainment’s long-term issuer default rating. The institution said the rating was constrained by the parent group’s “modest size” and “single-location focus” in terms of casino business.
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.
The Japanese conglomerate also has pachinko-sector business in its domestic market.
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