Universal Entertainment will issue additional senior notes due 2024 to improve cash flow and redeem US$118m in outstanding notes.
Japan.- The gaming company Universal Entertainment Corp has announced it will issue additional notes due in 2024 outside of Japan.
The company wants to redeem the outstanding principal amount of US$118m of the company’s existing notes due 2021, which were privately placed outside Japan in December 2018.
In a statement, Universal Entertainment said it will promptly commence negotiation on the terms of the additional notes with potential investors.
The company believes there will be no major obstacles to the issuance of the notes in the current market environment.
Last October, Universal Entertainment announced an increase in planned notes from US$100m to US$135m.
In May, Universal published its financial results for the first quarter of the year and reported net sales down 64 per cent year-on-year at JPY14.7bn (US$134.1m).
The Amusement Equipment business saw sales fall to 12,708 units compared with 52,631 units in the same period of 2020. Its net sales were JPY5.38bn, down 78.2 per cent year-on-year.
Universal reported a net loss of JPY5.2bn (US$48m), which it attributed to restrictions at Okada Manila.
The Okada Manila Integrated Resort had been operating limited to a capacity of 30 per cent but has been closed since March.