Genting unit plans to issue US$500mil guaranteed notes
PETALING JAYA: Genting Bhd’s indirect wholly-owned subsidiary, GOHL Capital Ltd plans to issue US$500mil-worth guaranteed notes to fund the development of Resorts World Las Vegas and the group’s working capital, among others.
In a filing with Bursa Malaysia, the company announced that the guaranteed notes, which will be offered at a coupon rate of 4.25% per annum, mature on Jan 24, 2027. The coupon is payable on a semi-annual basis.
The notes constitute a further issuance of, and will be consolidated with, the existing US$1bil principal amount of notes issued on Jan 24 this year.
The notes are expected to be listed on the Hong Kong stock exchange on or around Oct 18 this year. Genting Bhd
“The company wishes to announce that GOHL Capital Ltd has on Oct 10, completed the book-building process and priced an offering of US$500mil guaranteed notes at 4.25% due 2027.
“The guaranteed notes have been offered entirely offshore and outside the United States and will be fully and unconditionally guaranteed by Genting Overseas Holdings Ltd, a direct wholly owned subsidiary of Genting and holds 100% equity interest in GOHL Capital.
“The notes are expected to be listed on the Hong Kong stock exchange on or around Oct 18 this year,” said Genting in its filing with the stock exchange.
To note, Genting has added that the guaranteed notes offering is not subject to any regulatory or shareholder approvals.
The proceeds from the issuance is expected to be used to replace certain borrowings in the Genting group as well as to cover other general corporate purposes such as the development of Resorts World Las Vegas, operating expenses and working capital requirements, among others.
Moody’s and Fitch Ratings have assigned a rating of Baa1 and A- respectively to the proposed guaranteed notes.