MANILA, Philippines - Travellers International Hotel Group, Inc., a joint venture between Andrew Tan-led Alliance Global Group Inc. and Genting Hong Kong Ltd. that is developing casino and entertainment projects in the country, has raised $300 million from issuance of 7-year international bonds.
In a disclosure to the stock exchange, Alliance Global said its maiden bond offering will carry a coupon rate of 6.9%.
This inaugural transaction from Travellers represents the lowest ever bond yield achieved by Asian gaming companies. This bond also bears the lowest ever coupon amongst unsecured USD bond offerings from gaming companies globally.
"We are very pleased with the strong support from investor community on our inaugural bond issue." said Travellers chairman and chief executive officer David Chua said.
Travellers president Kingson Sian said the bond offering will enable the company to broaden its investor base and diversified sources of funding
The final orderbook was 4 times covered, with orders from 88 accounts. Over 90% of the transaction was distributed into Asia with the rest into Europe. In terms of investor type breakdown, 59% of the notes were distributed to banks, 25% to fund managers, 14% to private banks and 2% to insurance companies.
The net proceeds of the offering are expected to finance capital and project expenditure, to refinance existing indebtedness and for general corporate purposes.
UBS acted as the sole global coordinator, Deutsche Bank and UBS acted as joint lead managers and bookrunners, and BDO acted as the domestic lead manager for the transaction.
Travellers is a leading developer of integrated tourism resorts in the Philippines, owning and operating Resorts World Manila, the first and only integrated leisure and resort property in the Philippines that combines privately-operated gaming facilities with other leisure,
entertainment, hotel and dining amenities.