SkyCity provides update on refinancing and impairment of Adelaide assets
The refinancing served to extend the maturation of debt facilities worth NZ$465m.
SkyCity Entertainment Group has recently updates regarding its financial situation.
Firstly, SkyCity has finalised an agreement to extend its debt facilities of NZ$465m (US$281m) across 3, 4 and 7-year maturities through the United States Private Placement (USPP) program.
SkyCity has also extended two tranches of debt set to expire in 2025 and 2026. One tranche of NZ$80m was extended to 15 September 2027, while the second tranche worth NZ$137.5m was extended to 15 September 2028.
In a separate announcement, SkyCity has also updated that it will impair its Adelaide assets to reflect updated assumptions regarding the introduction of mandatory carded play at the Adelaide casino by 2026, plus additional legal and compliance costs of SkyCity Adelaide’s AML/CTF and host responsibility uplift programs. The group also expected a tax adjustment of NZ$129.6m due to recent changes in NZ tax legislation.
SkyCity has reassured that the above impairment will not affect its underlying EBITDA and NPAT for H1 2024. SkyCity’s final financial statement will be announced on 22 August 2024, and is subject to final audit and review by the Board.
Earlier in August, SkyCity Auckland was ordered a five-day closure period for its SkyCity Auckland Casino’s gambling area following an agreement with the Secretary for Internal Affairs, after the Auckland operator was found “failing to meet its host responsibility obligations in respect of a former customer.”
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