Second bond placement in months
Imperial Pacific International, operator of the Imperial Pacific Resort on the island of Saipan, is hoping to raise up to HK$300 million (US$38.2 million) through a bond placement. The company has been struggling to complete construction of the resort, the only licensed casino in the U.S.-controlled Commonwealth of the Northern Mariana Islands.
The bonds will be issued in four tranches and range in maturity from three years to seven and a half years with a yearly interest of between 5.25 percent and 6 percent.
The Hong Kong-listed firm has faced numerous problems completing Phase I of the resort and was recently granted a second extension to finish construction. The new deadline is February 28, 2021.
According to IPI, the bonds will be issued in denominations of HK$500,000. The company is seeking “independent professional, institutional or private investors whose ultimate beneficial owners are independent third parties.” The fundraising effort comes four months after IPI placed convertible bonds worth HK$46 million for completion of Phase I of the resort. At that time, reports Asia Gaming Brief, IPI said raising funds by issuing convertible bonds “represents an opportunity for the company to enhance its working capital and strengthen its capital base and financial position. The directors consider that the issue of the convertible bonds is an appropriate means of raising additional capital for the company since it will not have an immediate dilution effect on the shareholding of the existing shareholders.”
