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News on New Investment

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SkyCity Entertainment Group is considering offering $100 million of unsubordinated, unsecured, redeemable, fixed-rate, seven year bonds, with the potential for $25 million of over subscriptions.

SkyCity said last week that while it currently had enough debt funding to meet expected funding requirements until at least the start of 2018, it was investigating a potential New Zealand retail bond issue following the repayment of capital notes in May.

"The proceeds of the offer are intended to be used to reduce the drawings on SkyCity's bank facilities," the company said in today's statement. "The offer, if made, would form part of SkyCity's ongoing capital management strategy."

The casino company is seeking preliminary indications of interest. It intends to set the interest rate for the bonds through a bookbuild process on Sept. 2, with the offer expected to open Sept. 3.