Japan’s Universal Entertainment Corp, the parent company of Okada Manila operator Tiger Resort Leisure and Entertainment (TRLEI), says it will increase a planned notes offer from US$100 million to US$135 million as part of efforts to raise capital and increase liquidity.
The increase follows an announcement last month in which the company unveiled plans for a consent solicitation that would allow it to replace existing notes to the value of US$600 million and due in 2021 with new notes due 2024, while also raising an additional US$100 million in capital.
That additional capital has now been increased, with Universal previously stating, “The company intends to use the cash proceeds from such sale of additional notes for general corporate purposes.”
As previously reported by Inside Asian Gaming, under Universal’s US$600 million consent solicitation – which requires the approval of 100% of existing notes holders – the terms of the existing US$600 million notes would be amended to mature on 11 December 2024, while maintaining an interest rate of 8.5% per annum.
If Universal can’t acquire approval from 100% of notes holders, it will look to implement an exchange offer under which it would replace outstanding existing notes for new notes while amending its original Note Purchase Agreement to eliminate certain covenants and restrictive provisions relating to the existing notes. The company said it would need 75% of holders to confirm their approval to proceed with the exchange offer.
The consent solicitation and the exchange offer will serve to delay substantial repayments for Universal but won’t raise any additional proceeds, thus prompting the addition of US$135 million in new notes.