International edition
September 17, 2021

It would begin marketing the bonds to investors immediately

Galaxy Entertainment plans us$ 150 million bond sale in Hong Kong

(Hong Kong).- Galaxy Entertainment, part-owned by Permira Advisers, plans to raise us$ 150 million from a sale of bonds in Hong Kong, making it the first casino operator to access the market.


alaxy will begin marketing the bonds to investors immediately, Robert Drake, chief financial officer, said in a phone interview today. It’s hired Bank of America, BOC International, HSBC Holdings and UBS AG to manage the sale, the casino operator said in a statement today.

“This is opportunistic financing,” Drake said. “There’s a strong demand for renminbi out there and this is just another example of how we use opportunities to increase our financial flexibility and strengthen our balance sheet.” The yuan is a denomination of the renminbi.

Galaxy, which is building a casino resort in Macau at an estimated cost of us$ 1.9 billion, said it will use the proceeds from the sale for its non-gambling business and for general corporate purposes. Casino revenue in Macau, the world’s biggest gambling hub, has grown 57 % this year through November to us$ 22 billion.

“It’s good for them to have a deal because they have financial needs” including a bond that is due next year, said Gabriel Chan, a Hong Kong-based equity analyst at Credit Suisse Group AG. The funds may also be used as the casino operator opens its us$ 1.9 billion project in Macau next year, he said.

Bond Investors

The company will meet bond investors in Hong Kong and Singapore from December 7, according to a person familiar with the matter, who asked not to be identified because the details are private.

Galaxy, whose market value has surged 158 % this year, owes some us$ 165 million of zero coupon convertible bonds which are due December 2011, according to data compiled by Bloomberg. The company bought back us$ 75 million last year of the us$ 240 million issued, Bloomberg data show.

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