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Resorts World Las Vegas announces financial transactions12 April 2023(PRESS RELEASE) -- Resorts World Las Vegas LLC announced that it has signed definitive documentation in relation to $800 million of senior secured credit facilities (“Amended Facilities”), which will be established by way of an amendment and extension of the Company’s existing $1,345 million senior secured credit facilities (“Existing Facilities”). The Amended Facilities, together with the equity and junior capital described below, will be used to refinance a portion of the Existing Facilities, pay transaction fees and expenses associated with this refinancing, and, in certain circumstances in the future, fund the Company’s general corporate requirements. The Amended Facilities, comprising a $700 million term loan and a $100 million revolving credit facility, have a scheduled maturity date of October 16, 2027, and include certain terms which provide additional operational and financing flexibility to the Company relative to those contained in the Existing Facilities. The signing of the Amended Facilities represents a notable financing milestone for both the Company and its parent company Genting Berhad (“Genting”, and together with its affiliates, “Genting Group”). In establishing the Amended Facilities, the Company engaged both existing lenders and select new financial institutions who collectively provided financing commitments in excess of $800 million. “The oversubscription in financing commitments from existing and new lenders is a testament to the Company’s improving operational performance and the strong support from our parent company Genting Berhad”, said Scott Sibella, RWLV’s President. Closing of the Amended Facilities is subject to customary closing conditions as well as receipt by the Company of (a) new equity contributions from Genting Group (“Equity Condition “), and (b) proceeds from any or a combination of issuance of unsecured debt, issuance of a subordinated shareholder loan, and injection of equity (which, for the avoidance of doubt, is in addition to the Equity Condition) from Genting Group of at least $300 million in aggregate (“Junior Capital Condition “). As of December 31, 2022, Genting Group had access to sufficient liquidity to provide the expected new equity contribution and/or subordinated shareholder loans to the Company to satisfy both the Equity Condition and Junior Capital Condition. Upon closing of the Amended Facilities, the Company’s weighted average debt maturity will be extended and refinancing risks will be reduced given the Amended Facilities will effectively extend the maturities of the Existing Facilities from April 16, 2024 to October 16, 2027, and the Company’s Consolidated Total Net Leverage Ratio is expected to be reduced due to the satisfaction of the Equity Contribution. “RWLV is a flagship asset of Genting Berhad and we want to thank all the new and existing lenders for demonstrating their support,” said Dato Sri Tan Kong Han, Genting Berhad’s President and Chief Operating Officer. “Genting Berhad remains committed to the long-term success of our landmark Las Vegas resort.” A summary description of the Amended Facilities is available to bondholders on the Company’s Syndtrak website. |