Universal Entertainment completes US$760m early note redemption

09/09/24

The repayment was completed on September 4.

Japan.- Universal Entertainment has announced through a company filing it has completed the early redemption of US$760m overseas private placed notes, which were originally set to mature in December 2024. The repayment was completed on September 4.

The notes were part of private placements, including notes exchanged for existing ones due in 2021 (US$482m) and additional notes issued in 2020 (US$135m) and 2021 (US$143m). The redemption price was 108.75 per cent of the principal amount, with an additional accrued interest of US$20.17 per US$1,000, making the total redemption amount US$826.5m.

For the second quarter of the year, Universal Entertainment posted net sales of JPY62.9bn (US$429m). That’s a decline of 20.7 per cent when compared to last year, mainly attributed to a drop in the net sales of its leisure equipment and integrated resort businesses.

Operating profit was down 69.6 per cent year-on-year to JPY3.26bn (US$22.2m), while ordinary profit was down 80.4 per cent to JPY5.57bn (US$38.0m). The company’s net income attributable to owners of the parent fell 97.5 per cent to JPY525m (US$3.6m).

Okada Manila’s performance was down year-on-year but, similar to the first quarter. The number of VIP guests was down due to the slowdown of the junket business. Although the performance of the mass market and gaming machine sectors was lower than the previous year, the company said sales are steadily increasing. In the hotel, food, and beverage businesses, the number of guests remains high.

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