The 2020-2021 pandemic hit various entertainment groups extremely hard in terms of financial gains, which made these groups incur immense losses during the initial days of the pandemic. One such group was the SkyCity Entertainment group that represents one of the most popular online casinos in New Zealand specially created for residents of this country. A reputed company, Skycity has declared a new $90 million bond offer in order to increase its liquidity due to the 2021 pandemic.
According to Inside Asian Gaming, the Wellington and Sydney-listed company is in charge of SkyCity Auckland, Sky City Hamilton, and SkyCity Queenstown in New Zealand, and recently spent around $243 million to renovate its SkyCity Adelaide venue in Australia. The source also reported that the bond scheme includes up to a $36 million over-subscription option and was launched after the company was forced to close its three domestic operations for just over seven weeks last spring due to coronavirus concerns.
The group declared its plans for the new bond while announcing the splendid performance of their Auckland flagship along with the increased wonderful performance of their brand-new renovated venue at Adelaide which had their estimated performance after the expensive renovation by the SkyCity Entertainment group. Soon after the group had declared their $90 Million dollar bond.
This bond opens up a new avenue for investors because of their special feature of not secured fixed rate bonds and not subordinated bonds which are available for procuring. The operators are also set to give a minimum amount of time for the six years scheme that is made available due to this lucrative bond being available to the public, local and institutional investors to pursue.
Bond Details
The official website of Skycity Entertainment group also announced recently an update regarding the bond offer which is far more lucrative. The official site states, “Sky City Entertainment Group Limited (Sky City) is making an offer of up to NZ$125 million (with the ability to accept oversubscriptions of up to an additional NZ$50 million at Sky City’s discretion) of 6 years, unsecured, unsubordinated, fixed-rate bonds maturing on 21 May 2027 (Bonds) to institutional investors and members of the public who are resident in New Zealand and to certain overseas institutional investors only”.
The official site also offers support for interested buyers and investors who are directed to contact the Joint Lead Managers for their concerns as the group provides no public pool for the offer. SkyCity Online Casino reported greater online traffic which was triple compared to mid-February in 2020.
Interested investors are asked to download a Product Disclosure Statement (PDS) in order to go through the finer details of the offer before making a decision. Interested investors should also check additional information available on the Register Entry for the offer, which provides an in-depth discussion and analysis of the $90 million bond offering from Sky city Entertainment group.
The group also declares the following on their website for interested investors for the offer, “Sky City reserves the right to cancel the Offer and the issue of the Bonds, in which case all application monies received will be refunded (without interest) as soon as practicable and, in any event, within five business days of the cancellation.” – which streamlines the cancellation and refund principles of the bond offer if such need shall arise.
Economic Status
Although SkyCity Entertainment group has reported better feedback after their Adelaide renovation, their guidance for the economic year of 2021 remains unchanged. It has indeed reported more earnings compared to the 2020 pandemic stricken fiscal year but it has not risen after their depreciation since 2019 pre-coronavirus pandemic times.
Since the pandemic still continues with its ebb and fall with every new variant spread, the operating environment for the casino group remains tentative, thereby not being able to provide proper earnings guidance for this economic year. The group reported depreciation of their total earnings almost by 76.1% to around $56.4 million owing to the pandemic-stricken economy.
Concluding Thoughts
According to the latest news, the $90 million bond offer from Sky City Entertainment group is sure to catch the attention of serious investors due to its exciting features and wholesome returns. While the casino company might have faced depreciation and losses in the economic year of 2021, the renovations of its other offices along with steady growing online traffic at their site ensures that the group is slowly but surely jumping back to its pre-pandemic sales records.
Investing in this $90 million dollar bond from Sky City Entertainment is an exciting offer for investors to consider if they are looking out for new, challenging business deals to invest in 2021. Due to the rapid growth of the online casino market in recent months, the offer poses more benefits than ever before.
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