In a strategic move aimed at managing their debts, two indirect wholly owned subsidiaries of Genting Bhd, Resorts World Las Vegas LLC (RWLV) and RWLV Capital Inc, have priced their offering of senior notes at an aggregate principal amount of US$400 million. These senior notes, which are due 2030, were confirmed in a filing with Bursa Malaysia today.
The seven-year senior notes come with an annual interest rate of 8.450 per cent, to be paid on a semi-annual basis. The net proceeds from this issuance, combined with available cash on hand, will serve the primary purpose of repaying the outstanding borrowings amounting to US$300 million under the subordinated intercompany note, a debt fully drawn by RWLV on June 28, 2023.
Subsequently, part of the raised funds will be channelled towards prepaying a section of the existing senior secured credit facilities. This strategic move aligns with the company’s objective of closing the extension and amendment of its new US$800 million senior secured credit facilities.
Following this, Genting stated that any remaining funds would be allocated for repayment of the remaining borrowings under the senior secured credit facilities and to cover transaction fees and other related expenses stemming from the offering.
The company also announced that the notes were offered and sold only in the United States to qualified institutional buyers. This was done by leveraging the exemption from the registration requirements under the United States Securities Act of 1933. Additionally, some non-US persons outside the United States were able to purchase these notes in offshore transactions, following the Regulation S under the Securities Act.
Genting Bhd anticipates that these notes will be listed on the official list of the Singapore Exchange Securities Trading Ltd.
This news story is based on an article in malaymail.com.
