Sky City raises $566 million in private placement

Sky City Entertainment said today it had raised US$400 million ($566 million) in debt in a private placement to mainly US investors.

The primary objectives of the placement were to increase Sky's average debt maturity profile, diversify the company's sources of debt funding and provide increased financial flexibility, the company said in a statement.

The money raised would be used to replace existing senior bank debt.

Sky said the placement was significantly oversubscribed. The money raised was in three currencies (US, NZ and Australian dollars) across four maturities for terms of seven, 10, 12 and 15 years.

Thirteen investors participated in the placement, including US, New Zealand and Australian institutions with the dominant interest from the US market.

Sky shares were down 2c at $5.13 today.

- NZPA