New Zealand-based casino company SkyCity Entertainment Group has launched a $NZ230 million ($A215 million) equity raising to strengthen its balance sheet after shutting down during the coronavirus lockdowns.

“Despite encouraging trading since reopening in New Zealand, the outlook remains uncertain as we adjust to new social and economic settings,” SkyCity board chairman Rob Campbell said.

SkyCity said it had secured waivers from its debt covenants through to mid-2021 as well as $NZ160 million new bank funding, which was contingent on SKyCity raising $NZ200 million in net funding.

“The equity raising will ensure that SkyCity remains appropriately capitalised and provides certainty to allow for the delivery of the strategic plan for the business,” Mr Campbell said.

The equity raising consists of a fully underwritten $NZ180 million institutional placement and a $NZ50 million share purchase plan.

The institutional placement will be at $NZ2.50, a 6.4 per cent discount to its last closing price of $NZ2.67 on the NZX.

SkyCity said its New Zealand properties reopened last month, except for its Queenstown wharf casino, while it expected Adelaide Casino to reopen later this month.

A $NZ330 million expansion of the Adelaide Casino is still on track to be completed by October.

SkyCity said it has received an initial $NZ105 million insurance payment for the NZ International Convention Centre project in Auckland, which was hit by a devastating fire in October after a worker apparently left an unattended blowtorch on the roof.

SkyCity said the NZ government had granted it a two-year extension on the $NZ750 million project, to January 2, 2025.

Source Article