Genting prices USD 1 B debut bond to fund Resorts World Las Vegas

Resorts World Las Vegas, owned by Malaysian developer and casino resort operator Genting Bhd, made its debut on the bond market with a USD 1 billion sale to fund its USD 4 billion gaming resort on the Las Vegas strip.

The company said on Wednesday it had sold a $1 billion 10-year bond with a coupon of 4.625 percent, and a $1.6 billion senior secured credit facility to finance the Las Vegas project. Orders from investors reached $3.8 billion, according to a banker on the bond deal quoted by Reuters, indicating strong demand. The notes have been offered and sold in the US only to qualified institutional buyers in reliance on the exemption from the registration requirements of the United States Securities Act of 1933.

S&P gave the bond a BBB+ rating, a rare investment-grade rating in the sector, bankers said; while Fitch Ratings Ltd has assigned an expected rating of “A-” to the notes. Genting is the highest-rated gaming group globally, as Resorts World Las Vegas presentation shows.

Citigroup Global Markets Inc, Barclays Bank PLC and JP Morgan Securities LLC are the joint global coordinators for the offering, and together with BNP Paribas Securities Corp, DBS Bank Ltd, SMBC Nikko Securities America Inc, Fifth Third Securities Inc and KeyBanc Capital Markets Inc are the joint bookrunners for the offering. Malayan Banking Bhd and Oversea-Chinese Banking Corp Ltd are the joint lead managers for the offering.

The notes are expected to be listed on the official list of the Singapore Exchange Securities Trading Ltd. At the noon break, Genting’s share price gained 17 sen or 2.5% to RM6.87 on 1.29 million shares done, as reported by The Sun Daily.

The group told Bursa Malaysia that the net proceeds from the issue of the notes will be used to fund remaining costs associated with the design, development, construction, equipping, financing and opening of the Resorts World Las Vegas casino in Clark County, Nevada. It will also be used for working capital and other general corporate purposes.

“It is contemplated that concurrently with the issuance of the notes, RWLV will enter into US$1.6 billion senior secured credit facilities, comprising a US$400 million term loan facility and a US$1.2 billion revolving credit facility,” the company said.

The approximately 3,400 room casino resort will be the first new integrated resort to open on the Las Vegas strip in over 10 years, the presentation said. It is expected to open by the end of 2020.

Resorts World Las Vegas will have a casino, more than 25 food and beverage outlets, retail outlets, over 210,000 square feet of spas, health clubs and resort pools as well as a day-and-night club under the Zouk brand. The resort will also feature more than 300,000 square feet of meeting and conference space.