Genting Singapore’s Resorts World Sentosa plans to raise $2.27 billion of bank loans, Bloomberg reported, citing sources familiar with the deal.
The five-year syndicated deal will be split into a S$1.75 billion amortising term loan, a $500 million revolving facility, and a $20 million bank guarantee facility.
Bank of Tokyo-Mitsubishi UFJ, DBS Bank, HSBC Bank, OCBC Bank and Sumitomo Mitsui Banking Corp are the lead arrangers and bookrunners for the deal. The roadshow will take place on March 5.
Proceeds will be used for refinancing and general corporate purposes.
Genting Singapore, an integrated resort and gaming company, recently reported a 36 per cent drop to $89.2 million in fourth-quarter profit attributable to shareholders. This was after apportioning $29.7 million in both comparative periods for holders of perpetual capital securities.
For the 2014 full-year, profit attributable to shareholders dropped 12 per cent to $517.3 million.
The group had $1.7 billion of borrowings and debt securities as at Dec 31, of which $518.7 million was repayable within a year. Genting Singapore repaid $525 million of its bank borrowings in 2014.
Resorts World Sentosa is the main buisiness asset of Genting Singapore, contributing $637.3 million of Genting Singapore’s $637.9 million revenue in the October to December quarter.
While the mass and premium mass segments of its gaming business saw growth in the fourth quarter, the premium segment saw win percentage and rolling volume fall significantly below average.
The group has been trying to diversify its business away from the Sentosa integrated resort. A 550-room hotel in the Jurong Lake district is scheduled to open from May 2015, and ground has broken for a new integrated resort in Jeju, South Korea.
Genting Singapore shares closed at 96.5 Singapore cents on Tuesday, down one cent.
Credits: AsiaOne Business