Universal Entertainment Corp., owned by Japanese businessman Kazuo Okada, announced that it had issued a total of $600 million in bonds. The corporate notes have a 12% annual yield. In addition, they are due 2020.
The Singapore-listed bonds were issued on August 25. The Japanese company announced that Deutsche Bank was the transaction’s book runner and lead manager. The generated proceeds will be used to fund the construction of Manila Bay Resorts, a $2-billion integrated resort, which is to be located in Entertainment City, Manila, as well as to re-finance a certain short-term debt.
Universal Entertainment affiliate Tiger Resorts Leisure and Entertainment Inc. is in charge of the construction of the 40-hectare casino complex. The company will be working together with local businessman Antonio Cojuangco.
A topping out ceremony for the first hotel that is to be part of the complex was held in July. During it, Tiger Resorts announced that Phase 1 of the project will be launched towards the end of 2016. It will feature two 500-room hotels, a 30,000-square-meter casino with 500 gaming tables and 3,000 slot machines, and a number of other entertainment, food and beverage, and retail options.
Each of the 15-story hotel towers will overlook Manila Bay, known to be one of the most popular landmarks in the Philippine capital. The two towers will be connected by means of a sky bridge.
As mentioned above, Tiger Resorts will be working together with Antonio Cojuangco on the ambitious project. Under the Philippine regulation, a foreign company cannot own more than 40% of the land on which it is to build a given property and this why it needs a local partner.
It seems that Mr. Cojuangco and its company All Seasons Hotels & Resorts Corp. purchased in May a 40% stake in Eagle II Holdings, which had previously been owned by Universal Entertainment. As it could be suggested Eagle II Holdings is involved in the project for the construction of the $2-billion luxury integrated resort Manila Bay Resorts.
At first, Tiger Resorts was to work together with local real estate developer Century Properties Group Inc. but the latter decided to withdraw from the project. It even filed a lawsuit against Mr. Okada’s company. Century Properties explained its move with an improperly terminated investment agreement. However, both parties announced earlier this year that the dispute had been settled but they would not work together on Manila Bay Resorts or at least not for now.
