SkyCity reduces its debt burden
New Zealand-based SkyCity Entertainment Group Ltd has reduced the debt burden of US Private Placement debt, buying back debt of US$53m, due to mature in March 2012. This buy back has helped the firm reduce its debt burden by 9.0%.
The company was under debt pressure of $NZ627m in the US private placement debt market. The holders of $NZ84.5m of debt, out of total debt, sold their shares at 2 percent discount to its face value, but the remaining stakeholders declined to sell their equities at the given discount.
Nigel Morrison, the Managing Director of SkyCity, said: "We are pleased to have achieved a significant buy back of our March 2012 USPP maturing debt. When we raised equity capital in April, we advised that the primary purpose of the equity raising was to reduce debt and this transaction is the first stage in that process".
The company expressed satisfaction over its performance in the tough times of economic slowdown and hopes to further reduce its debt burden in the ongoing financial year, by adopting new cost saving and performance enhancing strategies.
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