Crown announced that it has successfully raised $630 million after issuing 6.3 million subordinated notes at an issue price of $100 per note.
The proceeds of the company’s Notes II offer will be used for general corporate purposes including financing Crown Sydney, Crown Towers Perth and other anticipated projects.
“Notes II are expected to commence trading on a deferred settlement basis on the Australian Securities Exchange at 12:00 pm (Sydney time) on 24 April under the code “CWNHB”. Trading is expected to commence on a normal settlement basis on 29 April 2015,” the company said in its announcement.
Jon Mills, an analyst and contributor to the Australian website Intelligent Investor, wrote in a report that the scheme takes advantage of historically low interest rates to raise cheap capital and is “weighted in the company’s favour.”
“[A]s with Crown’s pokie machines, the terms of Notes II are weighted in the company’s favour. Paying a 4% margin above the bank bill rate, Notes II compare favourably to term deposit rates and recent bank hybrid offers.”