SKYCITY Offer of Fixed Rate Entertainment Seven Year Bonds Group Limited August 2015
Arranger, Organising Participant & Joint Lead Manager Joint Lead Manager Joint Lead Manager Joint Lead Manager
Arranger, Organising Participant & Joint Lead Manager Joint - - PowerPoint PPT Presentation
SKYCITY Offer of Fixed Rate Entertainment Seven Year Bonds Group Limited August 2015 Arranger, Organising Participant & Joint Lead Manager Joint Lead Manager Joint Lead Manager Joint Lead Manager Important Information A Product
Arranger, Organising Participant & Joint Lead Manager Joint Lead Manager Joint Lead Manager Joint Lead Manager
SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
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respect of unsubordinated, unsecured, redeemable, fixed rate, seven year bonds (“Bonds”) and lodged with the Registrar of Financial Service Providers in accordance with section 48 of the Financial Markets Conduct Act 2013 (“FMC Act”). You should read this document (“Presentation”) in conjunction with the PDS. Capitalised terms used in this Presentation and not otherwise defined have the meanings given to them in the PDS.
www.skycityentertainmentgroup.com/BondOffer.
recommendation by the Issuer, The New Zealand Guardian Trust Company Limited (“Supervisor”), Westpac Banking Corporation (acting through its New Zealand branch) (“Arranger and Organising Participant”), ANZ Bank New Zealand Limited, Deutsche Craigs Limited or First NZ Capital Securities Limited (together with the Arranger and Organising Participant, the “Joint Lead Managers”), or any of the directors,
for, or purchase, any of the Bonds. Nothing in this Presentation constitutes legal, financial, tax or other advice. The information in this Presentation does not take into account the particular investment objectives, financial situation, taxation position or needs of any person. You should make your own assessment of an investment in the Issuer based on the PDS and should not rely on this Presentation. No applications will be accepted or money received unless the applicant has received the PDS. In all cases, you should conduct your own research on the Issuer and analysis of any offer, the financial condition, assets and liabilities, financial position and performance, profits and losses, prospects and business affairs of the Issuer, and the contents of this Presentation.
their respective advisers (including commercial advisers), directors, officers, employees or agents accept any responsibility or liability for; make any representation, warranty or undertaking, express or implied, as to the fairness, accuracy or completeness of; and to the maximum extent permitted by law shall have no liability whatsoever (including, without limitation, arising from fault or negligence) for any loss arising from, this Presentation or any information contained, referred to or reflected in it or supplied or communicated orally or in writing to you or any other person. Some of the information set out in this Presentation relates to future matters, that are subject to a number of risks and uncertainties (many of which are beyond the control of the Issuer), which may cause the actual results, performance or achievements of the Issuer to be materially different from the future results set out in the Presentation. The inclusion of forward-looking information should not be regarded as a representation or warranty by the Issuer, the directors of the Issuer or any other person that those forward-looking statements will be achieved or that the assumptions underlying any forward-looking statements will in fact be correct.
(other than New Zealand).
NZX relating thereto that can be complied with on or before the date of this Presentation have been duly complied with. However, the Bonds have not yet been approved for trading and NZX accepts no responsibility for any statement in this Presentation. NZX is a licensed market operator and the NZX Debt Market is a licensed market, each regulated under the FMC Act.
SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
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SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
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SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
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Zealand and Australia
facilities and out-catering services
$2.3 billion
Standard & Poor’s
SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
7 Auckland Hamilton Queenstown/Wharf
Business Activities
Employees (FY15 average) 3,400 400 100 Normalised* Revenue (FY15) $603 million $51 million $19 million Normalised* EBITDA (FY15) $248 million $20 million $3 million Electronic Gaming Machines and Tables (at 30 June 2015) 1,647 EGMs 110 Tables 339 EGMs 23 Tables SKYCITY Queenstown: 86 EGMs 12 Tables SKYCITY Wharf: 70 EGMs 6 Tables Casino License Term Expires 2021 (extended to 2048 under NZICC Agreement if conditions satisfied) Expires 2027 Expires 2025 (Queenstown) and 2024 (Wharf)
* Normalised results adjust the VIP business win rate to a theoretical win rate of 1.35% and adjust for certain one-off revenue and expense
SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
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Adelaide Darwin
Business Activities
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 Machines and Tables (at 30 June 2015) 914 EGMs 79 Tables 634 EGMs 34 Tables Casino License Term Expires 2085 Exclusivity in South Australia until 2035 Exclusivity in northern half of Northern Territory until 2031
* Normalised results adjust the VIP business win rate to a theoretical win rate of 1.35% and adjust for certain one-off revenue and expense
SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
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FY15 Normalised* Revenue by Business Segment (including gaming GST ) FY15 Normalised* Revenue by Property (including gaming GST)
* Normalised results adjust the VIP business win rate to a theoretical win rate of 1.35% and adjust for certain one-off revenue and expense
21% 79% Non-Gaming Gaming 59% 19% 15% 5% 2% Auckland Adelaide Darwin Hamilton Queenstown & Wharf
SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
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‒ Extension of casino venue license to 2048 ‒ Additional EGMs, tables and ATGs ‒ TITO and cashless gaming ‒ Expansion of casino venue description ‒ Compensation if increase in casino duty within seven years of signing building works contract
300-room hotel and laneway
* Concessions become effective once all conditions of the NZICC Agreement are satisfied including signing of a building works contract.
SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
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February 2014: ‒ 20 year extension of exclusivity to 2035 ‒ Additional EGMs, tables and ATGs ‒ TITO and cashless gaming ‒ Lower tax rates for VIP gaming
reconfiguration of existing property completed in January 2015
‒ Expanded casino and six-star hotel ‒ No firm timetable but required to be completed by June 2019 (unless extended) ‒ Total cost of second phase expected to be around A$350 million
SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
12 Chris Moller (Chairman) Bruce Carter (Deputy Chairman) Nigel Morrison (Managing Director) Peter Cullinane Richard Didsbury Brent Harman Sue Suckling Richard Tsiang
SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
14 (NZ$ 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 1,057.4 1,108.6 Total Equity 773.9 816.9 Total Debt/Normalised* EBITDA 2.3x 2.3x Normalised* EBITDA/Normalised* Interest Expense 6.5x 8.0x
* Normalised results adjust the VIP business win rate to a theoretical win rate of 1.35% and adjust for certain one-off revenue and expense
SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
which $217 million was undrawn
Source Ranking Amount Outstanding (NZ$ million) (as at 30 June 2015) Bank Debt Facilities Senior 384 USPP Notes Senior 317 Deferred Expenses (2) Total Debt 699
notes mature
funding headroom
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SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
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this Offer (assumed to be $100 million)
NZD/USD 0.6822 NZD/AUD 0.8886
$0 $40 $110 $21 $147 $100
$172 $112
$109 $88 $120
FY16 FY17 FY18 FY19 FY20 FY21 FY22
Proforma Debt Maturity Profile - 30 June 2015 (NZ $ million)
USPP Proposed Senior Bond Bank - Drawn Bank - Undrawn
SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
revenue sources in New Zealand and Australia
casino venue license is extended under NZICC Agreement)
maturities until FY17
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SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
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SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
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Zealand
SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
22 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 earlier) Interest Rate Fixed rate of interest to be set following the book-build on 2 September 2015 Interest Payments Quarterly in arrears in equal amounts on 28 March, 28 June, 28 September and 28 December each year First Interest Payment Date will be Tuesday, 29 December 2015 as Monday, 28 December 2015 is not a Business Day Early Bird Interest Early bird interest (calculated at the Interest Rate) will be paid on application money paid in respect of accepted applications, within seven Business Dates of the Issue Date. Early Redemption SKYCITY may redeem Bonds on any Interest Payment Date from the third anniversary of the Issue Date – in accordance with the early redemption calculation Quotation* Expected to be quoted on NZX Debt Market. NZX ticker code SKC040 has been reserved for the Bonds
* Application has been made to NZX for permission to quote the Bonds on the NZX Debt Market and all the requirements of NZX relating thereto that can be complied with on or before the date of this presentation have been duly complied with. However, the Bonds have not yet been approved for trading and NZX accepts no responsibility for any statement in this document. NZX is a licensed market operator, and the NZX Debt Market is a licensed market, each regulated under the FMC Act.
SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
Ranking
Guarantee
Financial Covenants
(currently must not exceed 3.5x)
Events of Default
* Refer to the PDS and the Trust Deed for definitions of these ratios
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SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
Book-build
financial intermediaries are invited to participate in the book-build process
conducted by JLMs
Minimum Application
Fees
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SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds
PDS lodged Monday, 24 August 2015 Roadshow presentations Tuesday, 25 August 2015 and 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, 3 September 2015 Offer closes Tuesday, 22 September 2015 Issue Date Monday, 28 September 2015 Initial quotation and trading on NZX Debt Market Tuesday, 29 September 2015 First Interest Payment Date Tuesday, 29 December 2015
SKYCITY reserves the right to extend the Offer Closing Date and to vary any of the other dates set out in the timetable.
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