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New-Zealand’s Auckland-based gambling colossus SkyCity Entertainment Group has confirmed having generated NZ$180 million in disposable funds by way of a recent share placement endeavour. The funds were raised as part of a NZ$230 million equity fundraising initiative spearheaded earlier on. The casino operator also confirmed that the share placement offering was fully subscribed, and that the money was freed up by the group having sold off 72 million fully paid ordinary shares at a going rate of NZ$2.50 per ordinary share.
The group also declared itself pleasantly surprised by a massive influx of interest from new investors. The share placement process enjoyed strong and near-unanimous support from existing enterprise shareholders. The final settlement of the placement has been scheduled for conclusion on June 23 for the Australian Securities Exchange, and on June 24 for the New Zealand Securities Exchange.
Bonds To Be Redeemed
Despite the casino group having had released no information regarding the intended spend of the newly freed-up capital, it did once again reiterate that the funds raised are to form part of the full-equity NZ$230 fund-raiser. SkyCity has furthermore also given official notice of an intention to redeem all bonds left over from 2015 on the 28th day of this coming September. Payments too, will be finalised on the very same day.
The group has furthermore issued to bondholders the assurance of ongoing quarterly interest payments, including payments due by June 28. September’s quarterly interest payment release schedule remains on track too.
Group Not In The Clear Just Yet
The casino operator last month declared itself encouraged by reopening performances, but in the same breath confirmed that the earlier-proposed layoffs involving some 700 jobs were to continue regardless. SkyCity will in future be focusing exclusively on domestic markets and will no longer cater for international business.
SkyCity’s entire portfolio of New Zealand and Australia operations have been negatively affected by the public health debacle. The operator has said that though an exceptionally difficult decision, it sees no alternative other than massive layoffs in order to keep its commercial activities afloat.
SkyCity is currently in the process of a complete commercial restructure. This is toward the end of ensuring ongoing liquidity as well as the casino operator being in a position of being able to fulfil its obligations to investors, remaining employees, shareholders and creditors alike. SkyCity is but one of thousands of business entities the world over that have been negatively affected by current market conditions and challenges.