Crown to raise $400 million

Crown to raise $400 million - 17th March 2015

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Crown Resorts wants to raise $400 million through subordinated notes,
to help fund developments. Source: AAP


JAMES Packer's Crown Resorts is seeking to raise around $400 million, partly to help fund development projects in Sydney, Perth and elsewhere.

CASINOS operator Crown will issue about $400 million of subordinated notes to be traded on the Australian Securities Exchange, with an initial interest rate of four per cent to 4.2 per cent.
The issue price of each note is $100.

"The offer forms part of Crown's ongoing capital management strategy, and the proceeds will be used for general corporate purposes including financing Crown Sydney, Crown Towers Perth and other anticipated growth projects," Crown chief financial officer Ken Barton said on Tuesday.

The subordinated notes are due for repayment in April 2075, subject to Crown's right to redeem the notes at any time from July 2021.

Crown operates casino resorts in Melbourne and Perth and is planning to develop a six-star hotel resort, including VIP gaming facilities, at Barangaroo South in Sydney.

Crown also plans to develop a casino resort in Las Vegas and a five-star hotel and apartment complex on a site adjacent to Crown Melbourne.

Also, Crown and its consortium partner, Greenland Holdings Group, have lodged a response to the Queensland government's request for proposals to develop the Queens Wharf site in Brisbane.

Shares in Crown were eight cents higher at $13.55 at 1428 AEDT.