Rated B1/BB- by Moody’s, Fitch
Imperial Pacific International Holdings Ltd. has announced plans to issue high-yield bonds to fund the development of its integrated resort on the Pacific island of Saipan.
According to the Asia Gaming Brief, in a filing to the Hong Kong Stock Exchange the company said the value of the notes, the aggregate principal amount, the offer price and the interest rate have yet to be determined. The company did say the notes will be secured by the issuer’s casino assets and the resort under construction, and guaranteed by the parent and the owner of the lease of the land.
Reuters reports that Imperial Pacific needs about $380 million to finish the project and hopes to raise around $300 million from the bond sale. “If Imperial Pacific raises other funding, this will also be added to this disbursement account, which will maintain a minimum balance of $480 million before any funds can be used for other purposes, providing a buffer of $100 million against cost overruns. All accounts are pledged to the benefit of prospective investors,” said the news outlet.
Fitch Ratings, which said it expects to assign Imperial Pacific International Holdings Ltd a “B” rating with a stable outlook, noted Saipan’s “low tax regime, attractive location, the use of junkets/guarantors in its VIP gaming business and addition of tourist amenities in Saipan by IPI and other parties” as reasons for its confidence.
However, the agency cautioned that though the temporary Best Sunshine Live casino on Saipan has been very successful drawing VIPs, “There is no certainty that the eventual performance of IPI’s new casino in Saipan will match the performance of its temporary casino on the island and that of casinos in other Asian locations on a sustained basis.”
