SkyCity (ASX:SKC) to raise $163m via bond offer

Company News

by Michael Luu

Gambling and gaming company SkyCity Entertainment Group (ASX:SKC) is looking to raise up to $163 million in an effort to overcome pandemic-related challenges.

The casino operator is now offering unsecured, unsubordinated, fixed-rate bonds, as an alternative source of equity to its debt facilities with banks.

The term of the bonds is 6 years, spanning between May 10, 2021 and May 21, 2027. Bond buyers will be entitled to receive interest payments on a quarterly basis.

The New Zealand-based casino owner said its Auckland and Adelaide operations continue to face financial difficulties due to the “unpredictable” conditions of the current business environment and ongoing COVID-19 threats.

SkyCity believes the funding will be an crucial relief package for the firm and remains open to accepting an additional $NZ50 million from institutional and retail investors.

Shares in SkyCity (ASX:SKC) are trading  0.6 per cent higher at $3.33