Okada unit sells $600-M bonds to fund Manila casino

MANILA, Philippines - Universal Entertainment Corp. of Japanese gaming mogul Kazuo Okada has issued $600 million worth of bonds.

The offshore corporate notes have a yield of 12 percent per annum and are due 2020.

The bonds were listed on the Singapore Stock Exchange last Aug. 25.

Deutsche Bank served as lead manager and book runner for the transaction.

The company will use proceeds for the construction and development of its Manila Bay Resorts and to refinance existing short-term debt.

Tiger Resort Leisure and Entertainment Inc., an affiliate of Universal Entertainment, is building a $2 billion 44-hectare casino and resort complex at the Pagcor Entertainment City.

Deutsche Bank served as lead manager and book runner for the transaction.

Okada has partnered with businessman Antonio “Tonyboy” Cojangco for the $2 billion integrated resort project.

During the top-off ceremony held last July 30, Tiger Resort announced the scheduled opening of the first hotel in 2016.

As Okada’s local partner, Cojuangco is taking the entire 40 percent stake in Eagle II Holdings, which Universal Entertainment sold in May this year.  This is equivalent to approximately 24 percent in Universal Entertainment’s Eagle I Holdings.

During the top-off ceremony, Cojuangco said the partnership would eventually spin off another vehicle which would be listed on the Philippine Stock Exchange to raise funds to complete the project.

The project is envisioned to be a world-class Las Vegas style development with luxurious hotels, classy restaurants, commercial facilities, hotels, residences and a state of the art pool with real sand beach covered by a huge glass dome.

Tiger Resort is working on finishing the hotel in 2016 or in the first quarter of 2017. It will have two towers connected by a sky bridge with each tower having 15 floors, 500 rooms and an amazing view of Manila Bay and of the iconic dancing water fountain and light display within the property that will rival the fountains in Dubai.

Apart from the two hotels, there will be a 30,000 square meter casino with 500 table games and 3,000 slot machines.

Solaire Resort and Casino of Bloomberry Resorts Corp. was the first to open in Entertainment City – seen as the country’s answer to Macau and Las Vegas – followed by City of Dreams Manila of Macau-based casino giant Melco Crown Entertainment Ltd.

Completing the four components of Entertainment City is another integrated resort casino project by Alliance Global Group Inc. of Andrew Tan and Genting Hong Kong Ltd.