SKYCITY Entertainment Group Limited (ASX:SKC)
has announced plans to raise NZ$263 million of new equity through a capital raising.
The company intends to undertake a pro rata 1 for 10 accelerated entitlement offer of ordinary shares to eligible shareholders at an application price of NZ$4.40 per new share.
SKYCITY intends that the net proceeds from the offer will be used to repay bank debt and reduce gearing, in order to support the funding of future capital expenditure commitments in Auckland and Adelaide.
The offer is expected to assist in maintaining the company’s BBB- credit rating and allow it to continue to invest prudently in the business.
SKYCITY recorded a net profit of $66.58 million at 31 December 2015.