Universal says “significant majority” of Okada construction costs covered

Universal Entertainment said it has placed $400 million in notes, securing a “significant majority” of the construction costs for its $2.4 billion Okada Manila resort in the Philippines.

The notes mature in August 2020 and carry interest at 8.5 percent per annum, the company said in a regulatory filing.

Deutsche Bank acted as the placing agent for the notes, which are guaranteed by the company’s Aruze USA unit.

The company recently said  it was revising upwards its fiscal half-year guidance due to foreign exchange gains resulting from the strength of the yen. It now expects sales of 56.5 billion yen ($551.6 million), compared with its prior forecast for sales of 51.5 billion yen. Net income attributable to owners of the parent is now seen at 16 billion yen, up from 10 billion yen.

The company says Q2 and orders for fiscal Q3, ending March 2017, remain strong. However, it’s maintaining its full-year guidance as it’s unable to predict the potential effect of currency fluctuations.

The Okada Manila will be the largest IR so far in Manila’s Entertainment City and once fully operational will feature two luxury hotels, a 30,000 square meters casino floor with 3,000 slot machines and 500 table games, as well as a number of dining, leisure and entertainment options. It will include an indoor manmade beach and club covered by a huge glass dome, high-end and casual dining restaurants, upscale retail shops, trade halls and cinemas.