Bell Gully advises SkyCity on NZX-listed retail bond offer

4 May 2021

Bell Gully is advising SkyCity Entertainment Group on its retail bond offer of up to NZ$125 million (with the ability to accept oversubscriptions of up NZ$50 million) of 6 year, unsecured, unsubordinated, fixed rate bonds to institutional investors and New Zealand retail investors.

The offer is expected to open on 10 May 2021 and close on 14 May 2021. The bonds have been assigned a BBB- rating by S&P Global Ratings.

The Bell Gully team was led by corporate partner Chris Goddard and financial services partner David McPherson, supported by senior associate Philip Leightley and solicitors Lily Maclean and Kelsey Pepper.

Following the initial impact of the COVID-19 pandemic last year, the firm advised SkyCity on a comprehensive funding package which included a NZ$230 million equity raise, new debt facilities, an extension of $170 million of existing bank facilities and covenant waivers/relief from existing banks and USPP noteholders.

Chris Goddard commented: “The Bell Gully team has a long-standing relationship with SkyCity. On the back of our work last year, it was a pleasure to be able to assist SkyCity with its ongoing capital management programme."

Bruce Macdonald, SkyCity's Group Treasurer said: "This offer provides diversification of funding sources and is a natural fit with our strong New Zealand presence."

Bell Gully has supported SkyCity on a number of corporate and commercial matters over recent years. In 2019, Bell Gully also advised SkyCity on its binding agreement with Macquarie Principal Finance Group to sell a long-term concession over its Auckland car parks, and in 2018 on the sale of its Darwin casino.

Westpac acted as arranger and joint lead manager. ANZ, Commonwealth Bank of Australia, Craigs Investment Partners, Forsyth Barr and Jarden were also joint lead managers.