Crown lifts sizes of capital raising

Casinos operator Crown is now seeking to raise at least $600 million via an offer of notes, up from the $400 million originally intended.

James Packer's Crown Resorts has increased the size of a capital raising through the issue of subordinated notes, due to strong demand.

Casinos operator Crown said on Friday that it would seek to raise at least $600 million via the offer, up from the $400 million originally intended.

"We are pleased with the positive investor response to the offer," Crown chief financial officer Ken Barton said.

"Following the strong demand, we have increased the size of the offer and closed the bookbuild early with the margin set at the bottom of the indicative bookbuild range."

Crown has allocated $550 million of notes to brokers and institutional investors through the bookbuild process.

Also, Crown's major shareholder, Consolidated Press Holdings, is expected to take up $50 million in notes under the offer to securityholders, bringing the offer size to at least $600 million.

The interest rate for the notes will be calculated as the bank bill rate plus the margin. The margin has ben set at 4.0 per cent per annum.

For example, if the bank bill rate is 2.27 per cent, the notes will offer an interest rate of 6.27 per cent per annum.

The issue price of each note is $100.

Crown is seeking to raise funds to help pay for development projects in Sydney, Perth and elsewhere.

It 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 15 cents higher at $13.31 at 1156 AEDT.


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Source: AAP


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