investment bankers probably say SANDS kenna kill by NS the moment it locate here.
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Crown Shares Rise on A$1.6 Billion Debt Refinancing (Update1)
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By Robert Fenner
Dec. 4 (Bloomberg) -- Crown Ltd., Australia’s biggest casino owner, surged by a record in Sydney trading after raising A$1.6 billion ($1 billion) from banks to repay debt due in August 2010.
Crown shares rose 10 percent to close at A$5, their biggest gain since the stock commenced trade a year ago.
Chairman James Packer, who created the company when he split his media and gambling assets, refinanced the debt as he prepares to take control of U.S. operator Cannery Casino Resorts LLC, which Crown agreed to buy for $1.75 billion in December 2007. Crown won’t face another “major refinancing” until late calendar 2011, it said.
The company has net debt of A$180 million, after including $1.6 billion of cash being held on deposit pending settlement of the Cannery transaction.
Crown said it’s continuing talks with regulators in Nevada and Pennsylvania, U.S. states where Cannery has gambling operations, to gain licensing approval for the purchase.
In addition to today’s agreement on borrowings, Crown will have about $900 million of U.S. dollar-denominated debt with an average interest rate of 5.9 percent once it completes the Cannery purchase.
The Meadows Racino in Pittsburgh, which will contribute most of the earnings in the Cannery acquisition, has posted “double digit” revenue growth while its Las Vegas properties continued to suffer from the economic downturn, Crown said.
Trading at Crown casinos in Melbourne and Perth has been “solid” with revenue rising 4 percent in the five months ended November.
The company reiterated plans to pay out all of its earnings for the year ending June 30 as dividends.
To contact the reporter on this story: Robert Fenner in Sydney [email protected]
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Crown Shares Rise on A$1.6 Billion Debt Refinancing (Update1)
Email | Print | A A A
By Robert Fenner
Dec. 4 (Bloomberg) -- Crown Ltd., Australia’s biggest casino owner, surged by a record in Sydney trading after raising A$1.6 billion ($1 billion) from banks to repay debt due in August 2010.
Crown shares rose 10 percent to close at A$5, their biggest gain since the stock commenced trade a year ago.
Chairman James Packer, who created the company when he split his media and gambling assets, refinanced the debt as he prepares to take control of U.S. operator Cannery Casino Resorts LLC, which Crown agreed to buy for $1.75 billion in December 2007. Crown won’t face another “major refinancing” until late calendar 2011, it said.
The company has net debt of A$180 million, after including $1.6 billion of cash being held on deposit pending settlement of the Cannery transaction.
Crown said it’s continuing talks with regulators in Nevada and Pennsylvania, U.S. states where Cannery has gambling operations, to gain licensing approval for the purchase.
In addition to today’s agreement on borrowings, Crown will have about $900 million of U.S. dollar-denominated debt with an average interest rate of 5.9 percent once it completes the Cannery purchase.
The Meadows Racino in Pittsburgh, which will contribute most of the earnings in the Cannery acquisition, has posted “double digit” revenue growth while its Las Vegas properties continued to suffer from the economic downturn, Crown said.
Trading at Crown casinos in Melbourne and Perth has been “solid” with revenue rising 4 percent in the five months ended November.
The company reiterated plans to pay out all of its earnings for the year ending June 30 as dividends.
To contact the reporter on this story: Robert Fenner in Sydney [email protected]
