Skycity Entertainment Group Limited · NZX:SKC
Skycity Entertainment — Debt Investor Presentation (August 2015)
26 slides from Skycity Entertainment's debt investor presentation, Aug 24, 2015
Slide 1: ASX cover letter for Bond Offer Roadshow Presentation
24th August, 2015 For personal use only ASX Market Announcements Australian Stock Exchange Exchange Centre Level 6 20 Bridge Street Sydney NSW 2000 Australia Dear Sir/Madam RE: SKYCITY ENTERTAINMENT GROUP LIMITED (SKC) Please find attached the Bond Offer Roadshow Presentation for the just announced
Slide 2: SKYCITY Offer of Fixed Rate Seven Year Bonds
SKYCITY Offer of Fixed Rate Seven Year Bonds For personal use only Entertainment Group Limited August 2015 Arranger, Organising Participant & Joint Lead Manager Joint Lead Manager Joint Lead Manager Joint Lead Manager
Slide 3: Important Information
Important Information A Product Disclosure Statement (“PDS”) dated 24 August 2015 has been prepared by SKYCITY Entertainment Group Limited (“Issuer”) in For personal use only respect of unsubordinated, unsecured, redeemable, fixed rate, seven year bonds (“Bonds”) and lodged with the Registrar of F
Slide 4: Agenda
Agenda For personal use only Introduction Overview of SKYCITY Group Financial Information Credit Strengths and Key Risks Bond Offer Information SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds 3
Slide 5: Introduction
Introduction For personal use only Offer by SKYCITY of unsubordinated, unsecured, redeemable, fixed rate, seven year bonds due 28 September 2022 First offer of SKYCITY bonds into New Zealand market since issue of SKYCITY capital notes in 2000 Seeking to raise up to $100 million (plus up to $25
Slide 6: Overview of SKYCITY Group
For personal use only Overview of SKYCITY Group
Slide 7: SKYCITY Group
SKYCITY Group For personal use only Owner/operator of casino and other entertainment facilities in New Zealand and Australia Key activities – casinos, restaurants and bars, hotels, convention facilities and out-catering services Two major growth projects – NZICC and Adelaide transformation E
Slide 8: New Zealand Properties
New Zealand Properties For personal use only Auckland Hamilton Queenstown/Wharf Business Activities Gaming Gaming Gaming Hotels Restaurants & bars Restaurant & bars Restaurants & bars Convention facilities Convention facilities Bowling alley Out-catering Sky Tower Employees 3
Slide 9: Australian Properties
Australian Properties For personal use only Adelaide Darwin Business Activities Gaming Gaming Restaurants & bars Hotels Restaurants & bars Employees (FY15 average) 1,200 800 Normalised* Revenue (FY15) A$174 million A$137 million Normalised* EBITDA (FY15) A$27 million A$39 million Gaming Ma
Slide 10: Revenue Sources
Revenue Sources For personal use only FY15 Normalised* Revenue by Business FY15 Normalised* Revenue by Property Segment (including gaming GST ) (including gaming GST) 5% 2% Auckland 21% 15% Adelaide Non-Gaming Darwin Gaming 19% 59% Hamilton 79% Queenstown & Wharf * Normalised results adjust the VIP
Slide 11: NZICC Project
NZICC Project For personal use only SKYCITY committed to designing and building the NZICC In return, regulatory concessions provided for SKYCITY Auckland*: ‒ Extension of casino venue license to 2048 ‒ Additional EGMs, tables and ATGs ‒ TITO and cashless gaming ‒ Expansion of casino venue descri
Slide 12: Adelaide Casino Transformation
Adelaide Casino Transformation Two-phase transformation of Adelaide Casino For personal use only New Approved Licensing Agreement and Casino Duty Agreement effective from February 2014: ‒ 20 year extension of exclusivity to 2035 ‒ Additional EGMs, tables and ATGs ‒ TITO and cashless gaming ‒ Low
Slide 13: Board of Directors
Board of Directors For personal use only Chris Moller Bruce Carter Nigel Morrison Peter Cullinane (Chairman) (Deputy Chairman) (Managing Director) Richard Didsbury Brent Harman Sue Suckling Richard Tsiang SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds 12
Slide 14: Financial Information
For personal use only Financial Information
Slide 15: Historical Financial Performance
Historical Financial Performance For personal use only (NZ$ million) FY14 FY15 Revenue 820.5 916.1 EBITDA 257.4 304.1 NPAT 98.5 128.7 Normalised* Revenue 927.3 1,007.7 Normalised* EBITDA 287.6 304.9 Normalised* NPAT 123.2 134.1 Total Assets 1,831.3 1,925.6 Total Debt 657.1 699.1 Total Liabilities 1,
Slide 16: Debt Funding Sources
Debt Funding Sources For personal use only Total committed debt facilities as at 30 June 2015 of $918 million, of which $217 million was undrawn Amount Outstanding (NZ$ million) Source Ranking (as at 30 June 2015) Bank Debt Facilities Senior 384 USPP Notes Senior 317 Deferred Expenses (2) Total De
Slide 17: Debt Maturity Profile
Debt Maturity Profile For personal use only Debt maturity profile at 30 June 2015 with pro forma adjustment for this Offer (assumed to be $100 million) Proforma Debt Maturity Profile - 30 June 2015 (NZ $ million) USPP Proposed Senior Bond Bank - Drawn Bank - Undrawn $109 $120 $88 $172 $112 $110 $1
Slide 18: Credit Strengths and Key Risks
For personal use only Credit Strengths and Key Risks
Slide 19: Credit Strengths
Credit Strengths For personal use only Significant gaming and entertainment business with diversified revenue sources in New Zealand and Australia Sole casino operator in all cities that SKYCITY Group operates in All casino licenses expire after maturity of Bonds (assuming Auckland casino venu
Slide 20: Key Risks
Key Risks For personal use only Highly regulated industry Earning concentration in Auckland Economic conditions affecting discretionary income Renewal or extension of Auckland casino license Development project risks SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bond
Slide 21: Bond Offer Information
For personal use only Bond Offer Information
Slide 22: Offer Structure
Offer Structure For personal use only PDS lodged with Register of Financial Service Providers on 24 August 2015 Open to institutional investors and members of the public resident in New Zealand Up to $100 million (plus up to $25 million of over-subscriptions) All Bonds may be reserved under
Slide 23: Key Terms of Bonds
Key Terms of Bonds For personal use only Issuer SKYCITY Entertainment Group Limited (“SKYCITY”) Description of Bonds Unsubordinated, unsecured, redeemable, fixed rate debt obligations of SKYCITY Issue Price $1.00 per Bond Maturity Date Seven year term maturing on 28 September 2022 (unless redeemed e
Slide 24: Protections for Bondholders
Protections for Bondholders For personal use only Ranking Bonds rank equally on liquidation with all other unsecured unsubordinated obligations of SKYCITY Bonds rank ahead of Equity Guarantee Bonds guaranteed by all current members of SKYCITY Group Financial Covenants Restrictions on new sec
Slide 25: Offer Process
Offer Process For personal use only Book-build Primary Market Participants, institutional investors and other approved financial intermediaries are invited to participate in the book-build process Indicative coupon of 4.65% - 4.90% Firm Allocations to be determined by SKYCITY following the boo
Slide 26: Important Dates
Important Dates For personal use only PDS lodged Monday, 24 August 2015 Tuesday, 25 August 2015 and Roadshow presentations Wednesday, 26 August 2015 Book-build bids due 12.00pm on Wednesday, 2 September 2015 Rate Set Date and Firm Allocations notified Wednesday, 2 September 2015 Offer opens Thursday
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