The bonds on offer have been given a BBB- rating by a Big 3 credit rating agency
Bell Gully has guided a long-term client, Auckland gambling and entertainment company and NZX lister SkyCity Entertainment Group, on its multimillion-dollar retail bond offer.
The deal involves six-year, unsecured, unsubordinated, fixed-rate bonds offered to institutional investors and New Zealand retail investors, the firm said. The offer can generate up to $125m, and can accept oversubscriptions of up to $50m.
Big 3 credit-rating agency S&P Global Ratings gave the bonds a BBB- rating. The offer opens on Monday and closes on Friday.
“This offer provides diversification of funding sources and is a natural fit with our strong New Zealand presence,” SkyCity group treasurer Bruce Macdonald said.
The joint lead managers on the transaction were ANZ, Commonwealth Bank of Australia, Craigs Investment Partners, Forsyth Barr, Jarden and Westpac. Westpac also served as arranger.
Corporate partner Chris Goddard led Bell Gully’s team on the deal along with financial services partner David McPherson. They received support from senior associate Philip Leightley and solicitors Lily Maclean and Kelsey Pepper.
“The Bell Gully team has a long-standing relationship with SkyCity. On the back of our work last year, it was a pleasure to be able to assist SkyCity with its ongoing capital management programme,” Goddard said.
When COVID-19 struck last year, the firm had worked with SkyCity on a comprehensive funding package that covered a “$230m equity raise, new debt facilities, an extension of $170m of existing bank facilities and covenant waivers/relief from existing banks and USPP noteholders,” Bell Gully said.
The firm also guided SkyCity on the sale of a long-term concession over its car parks in Auckland in 2019, and on the sale on a SkyCity Darwin casino in 2018.
