Universal Entertainment raises US$800m from new notes
Universal Entertainment raised funds for the refinancing of existing overseas private placement notes.
The Philippines.- Universal Entertainment Corporation has announced that it has raised US$800m in funds to refinance its US$760m in overseas private placement notes maturing in December 2024.
It said it would issue new US dollar-denominated private placement notes on July 26 via an overseas private placement for US$400m, with an interest rate of 9.875 per cent per annum, maturing on August 1, 2029. The remaining US$400 million was obtained through a seven-year loan arranged by Tiger Resort, Leisure and Entertainment, the promoter of Okada Manila, with China Banking Corp. The loan will commence on August 1.
It said: “The refinancing has been comprised with the bank loan by TRLEI and the new notes by the company, considering the adequacy of the repayment plan for each borrowing entity’s ongoing business, the tax effect on the company’s interest expense, and the diversification of lenders and repayment dates.”
Fitch Ratings gave Universal Entertainment’s proposed US dollar-denominated private placement notes an anticipated rating of B-. The final rating is contingent upon receiving documents that conform to the provided information and verify that the new funds will be sufficient to redeem the maturing notes in full.
