Japan’s Universal Entertainment Corporation says it is set to raise US$600 million via the issuance of privately placed notes, with the funds to be used for completion of its Philippines IR Okada Manila and to repay debt.
In an announcement, Universal revealed it has executed a placement agency agreement with Union Gaming Securities in relation to the US$600 million as well as a note purchase agreement with investors for the entire amount. The notes will be issued this Tuesday 11 December 2018 and mature on the same date in 2021.
Specifically, proceeds from the issuance of notes will be used to cover construction costs at Okada Manila – which is still to complete around half of its total 1,000 hotel rooms – and to repay borrowings by its subsidiary Tiger Resort Asia Limited. Tiger Resort Asia, the operating entity of Okada Manila, borrowed JPY33 billion (US$293 million) in February as a short-term loan.
Universal recently stated that it would continue to open more hotel rooms as 2018 winds down, which it expects to help drive ongoing GGR growth into the new year.
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