SkyCity raises $230m
Casino company SkyCity Entertainment is on trading halt as it raises $230 million to strengthen its finances.
The company said it would raise up to $180m in a placement with institutional investors and $50m from shareholders in a share purchase plan.
It has also arranged $170m in new debt facilities.
SkyCity said the moves were part of a plan to strengthen its balance sheet and secure extra funding if needed.
New Zealand border closures slashed the number of physical overseas visitors it receives, although the company still has its Australian casino, hotel and restaurant businesses and online casino services.
Having flagged 900 job losses, the company reopened most of its New Zealand facilities in midMay after closing in late March. The Adelaide casino is expected to reopen later this month.
SkyCity said trading since reopening its New Zealand properties had been encouraging. However, there was still uncertainty over the future economic environment and the reopening of international borders.
The company also updated its earnings outlook, with group normalised net profit at around $52m to $67m, down from a forecast of $130m in February.
SkyCity’s chief executive,
Graeme Stephens, said the capital raised would ensure the company had sufficient funds for the longterm and enough liquidity to complete two major projects, an expansion in Adelaide and the New Zealand International Convention Centre and Horizon Hotel in Auckland.
The convention centre caught fire during construction in October last year and is now set to be finished at the start of 2025.
The company will also make an early repayment of $125m in bonds in September.