Proactiveinvestors Australia Crown Limited Proactiveinvestors Australia Crown Limited RSS feed en Mon, 27 May 2019 01:14:11 +1000 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - Crown placement to raise $300 million ]]> Crown Limited (ASX:CWN) has completed an underwritten equity placement of shares to raise $300 million in new capital at $4.95 per share (representing a 9% discount to Crown’s closing price on 16 December 2008).

Consolidated Press Holdings has participated in the Placement for $100 million of the $300 million approval subject to approval from Crown shareholders given CPH is a related party of Crown.

The proceeds of the equity placement and SPP will further strengthen Crown’s balance sheet and, coupled with the major refinancing announced on 4 December 2008, increase funding flexibility going forward.

Crown was last trading at $5.18.

Wed, 17 Dec 2008 00:00:00 +1100
<![CDATA[News - Crown Limited completes major refinancing ]]> Refinance of Syndicated Debt Facility

Crown (ASX:CWN) has raised approximately AUD$1.6 billion from ten banks in a series of bilateral facilities to fully repay its Syndicated Debt Facility which was due to expire in August 2010. The bilaterals provide approximately AUD$1.1 billion of AUD denominated facilities and approximately USD$355 million of USD denominated facilities with a maturity of between two and five years.

The outcome of the refinance is that Crown’s next major refinancing is not due until FY2012 (in late calendar 2011). Attached is the Group’s new debt maturity profile, showing both AUD and USD denominated debt, post the refinancing.  The impact of the higher margins associated with the refinancing has been more than offset by a reduction in the base reference rate. Crown currently has net debt of approximately AUD$180 million. Included in Crown’s current net debt is cash on deposit, including approximately USD$1.6 billion which is denominated in US Dollars pending settlement of the Cannery acquisition.

Post settlement of Cannery, Crown will have approximately USD$900 million of USD denominated debt. As previously announced, Crown has locked in its interest rate exposure on this USD$900 million of debt at a weighted average rate of 5.9% inclusive of margins (for between five and twelve years). Crown’s AUD denominated debt is currently at floating rates.

Crown has resolved to pay 100% of normalised FY2009 earnings to shareholders.

Joint venture Macau

Crown would like to highlight that its NASDAQ listed joint venture in Macau, Melco Crown Entertainment Limited (“MPEL”) reported on 13 November that MPEL is fully funded to complete its City of Dreams project,with approximately USD$1.65 billion of cash and undrawn debt facilities available and with only USD$1.0 billion of cash required to complete and open Phase I of the development. MPEL expects Phase 1 to generate cash immediately, but even if this cash is ignored, MPEL has sufficient liquidity to complete and open both Phases 1 and 2 of City of Dreams.

Crown has agreed to provide a further CAD$20 million of funding for Gateway. The additional funding mirrors Crown’s original investment being made partly by way of equity and partly by way of shareholder debt. Macquarie Group, Crown’s joint venture partner in Gateway, has agreed to invest an identical amount. This additional funding has allowed Gateway, amongst other uses, to add high quality VIP table gaming and VIP slot facilities to the new Grand Villa Casino which successfully opened last month. Gateway has long term debt facilities (maturity 2014) in place with no recourse to Gateway shareholders.

Crown Melbourne and Burswood Casinos

At Crown Melbourne and Burswood, trading from through to the end of November has continued to be solid with revenue growth (excluding VIP commission program play) up 4% on the corresponding five month period last year. Growth in VIP commission program play has continued to be very strong over the same period.


For the July to November period, the Meadows Racino in Pittsburgh, which is expected to contribute over 60% of Cannery’s future EBITDA, has achieved double digit year-on-year revenue growth. Cannery’s Las Vegas properties, which are expected to account (in aggregate) for only 7% to 9% of Crown’s total EBITDA post acquisition, continue to be affected by the economic downturn in Nevada. Crown is continuing to work with the Nevada and Pennsylvania regulators to resolve the final outstanding issues and anticipates decisions on Crown’s licensing applications in the New Year.

Crown was trading at $5.29.

Thu, 04 Dec 2008 00:00:00 +1100