US$500m notes issue to refinance debt, fund Vegas project

PETALING JAYA: Genting Bhd is issuing an additional US$500 million (RM2.11 billion) notes to refinance its borrowings and fund the development of the Resorts World Las Vegas.

This is on top of the existing US$1 billion notes that were issued on Jan 24, 2017.

Genting told Bursa Malaysia yesterday that its indirect wholly owned subsidiary GOHL Capital Ltd had on Oct 10 completed the book-building process and priced an offering of US$500 million 4.25% guaranteed notes due 2027.

The notes are expected to be listed on the Hong Kong stock exchange on or around Oct 18.

Moody’s Investors Service Inc and Fitch Ratings Ltd have assigned a rating of “Baa1” and “A-” respectively to the proposed notes issuance.

Net proceeds from the notes are expected to be used to replace certain borrowings in Genting and its consolidated entities and for other general corporate purposes, including the investments for the development of Resorts World Las Vegas and/or other projects.

The offering is not subject to any regulatory or shareholder approvals.

Citigroup Global Markets Ltd is the global coordinator for the offering, and together with JPMorgan Securities plc and SMBC Nikko Capital Markets Ltd are the joint bookrunners and joint lead managers for the offering. Genting said the notes will be fully and unconditionally guaranteed by wholly owned subsidiary Genting Overseas Holdings Ltd.

Genting shares yesterday fell 13 sen to RM9.50 on 2.72 million units traded.