Operator News
New Zealand – SkyCity raises NZ$230m in new equity to protect against COVID-19 downturn
By Phil - 17 June 2020
New Zealand casino operator SkyCity Entertainment has raised NZ$230m in new equity to strengthen its balance sheet and aid its ‘recovery from the impacts of COVID-19.’
The new equity will comprise a NZ$180m fully underwritten placement to institutional and other selected investors plus a share purchase plan for its existing shareholders in Australia and New Zealand to raise another NZ$50m.
The operator, whose casinos reopened on May 14 following a seven-week closure, has already been given covenant waivers from its lenders. It expects its Adelaide casino to reopen by the end of June.
SkyCity Chairman Rob Campbell said: “Over the past few months, SkyCity has faced challenges which have impacted the business and operations, particularly the disruption caused by COVID-19. Despite encouraging trading since reopening in New Zealand, the outlook remains uncertain as we adjust to new social and economic settings.
Accordingly, the SkyCity board has resolved to increase liquidity and to provide additional financial flexibility for the business to protect against the prospect of a slower or more protracted recovery from the impacts of COVID-19.
“The equity raising will ensure that SkyCity remains appropriately capitalised and provides certainty to allow for the delivery of the strategic plan for the business,” he added.
SkyCity Chief Executive Officer Graeme Stephens added: “For now, our focus is on ensuring we continue to manage our business safely and effectively through this challenging period to emerge in a strong position to capitalise on the great assets we have and the opportunities that lie ahead.”
