The casino business of Tabcorp Holdings Limited
(ASX:TAH), Echo Entertainment, is reported to be raising $200 million of long-term bonds.
Although the creation of Echo is still under approval, UBS is acting as an adviser on the transaction for the company to head to the US private placement market to raise the bonds.
The company is expected to have drawn $1 billion of its debt when Echo is formally incorporated.
Tabcorp did not provide a comment to the Financial Review on the private placement bond issue, but the newspaper has reported that the existing $1.4 billion syndicated bank loan consists of a $200 million two-year facility and a $600 million five-year facility.
In the first six months of the 2011 financial year Tabcorp Holdings posted a net profit of $265.5 million.
