New Zealand’s SkyCity Entertainment Group says it is unable to issue dividends to shareholders for the remainder of 2022 after securing an extension to debt covenant relief for the June 2022 and December 2022 testing periods.
In a Tuesday morning filing, SkyCity revealed it has secured debt covenant waivers from its banking syndicate and US private placement holders for the 30 June 2022 testing period, and an amendment to debt covenants for the 31 December 2022 testing period.
However, the company will be unable to make dividend distributions to shareholders for the duration of these testing periods under the new agreements, noting that it will resume distributions as soon as it is able to do so.
Explaining the reasons for seeking further debt covenant relief, SkyCity said, “Despite recent improved performance, SkyCity has secured this further covenant relief as a matter of prudence to provide the Group with contingency in the event of a further material disruption of the near-term operating environment due to COVID-19.
“SkyCity is appreciative of the continued support from its financiers as it navigates the impacts of COVID-19 disruptions on the Group.”
SkyCity said it remains unable to provide detailed earnings guidance for FY22 but remains positive on its medium-term outlook.
New Zealand last month reopened its borders to fully-vaccinated Australians, while international arrivals from nations subject to New Zealand’s visa-waiver program, including the United States, United Kingdom, Singapore, Japan, South Korea and most of Europe, have been allowed entry since 1 May.
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