Genting Malaysia has announced plans to offer to qualified institutional buyers US$525 million 7.250% Senior Unsecured Notes due 2029 through its wholly-owned subsidiaries Genting New York LLC and GENNY Capital Inc, aimed at refinancing existing debt.
Genting New York LLC will also enter into a new Senior Secured Credit Facility, which will include a US$775 million delayed draw term loan facility and a US$150 million revolving credit facility, the company added.
The notes have been assigned a BB+ (stable) rating by S&P Global Ratings and BBB- (negative) by Fitch Ratings.
In assigning its rating on the notes, the proceeds of which will be utilized to refinance Genting’s existing US$525 million senior unsecured notes due 2026 and to repay a US$175 million secured term loan, Fitch said it continues to rate Genting New York a notch below Genting Malaysia although this rating could be further weakened pending the result of the Genting group’s bid to win a full New York casino license.
“In that case, we think Genting New York LLC’s strategic importance to the Genting group and incentives for Genting Berhad to provide support are likely to be weaker, which could lead to Genting New York LLC’s IDR (Issuer Default Rating) being downgraded by more than one notch,” Fitch analysts wrote.
“Genting Malaysia has ‘High’ strategic and ‘Medium’ operational incentives to provide support to Genting New York LLC. The strategic incentive is underpinned by the competitive advantage and growth potential that Genting New York LLC lends to the group, which are centered on a full-scale casino licence win. If Genting New York LLC does not win the licence, we are likely to lower our assessment of the strategic incentive for support.”
