Okada delays opening of $2.4-b Manila casino
Japanese billionaire Kazuo Okada is raising $400 million to finance the completion of the $2.4-billion integrated casino and entertainment development at Pagcor Entertainment City in Parañaque City.
Universal Entertainment Corp., the holding company of Okada, in a statement on its website, hinted about the possible delay in the opening of Okada Manila due to “worse-than-expected weather conditions.”
“Okada Manila has not markedly lagged behind the original plan although the progress has differed somewhat from the plan, affected by worse-than-expected weather conditions,” Universal Entertainment said.
Tiger Resort Leisure and Entertainment Inc., the local unit of Okada, announced in July that Okada Manila would open in November.
“In view of policy actions by the Philippine government and the economic environment in the near-term, we are now in the process of carefully considering the optimal timing for opening the facility towards delivering maximized shareholder value,” it said.
Tiger Resorts president Steve Wolstenholme said last month phase 1 of the project was on track to open this year and construction was 85-percent completed.
Meanwhile, Universal Entertainment said it would generate $400 million from the issuance of privately placed notes at 8.5 percent per annum under Series 2 notes.
Universal Entertainment tapped Deutsche Securities Inc. as the placement agent for the transaction.
“The Series 2 notes are expected to be issued on Oct. 14, 2016. With the issuance of these Series 2 Notes, the company will have successfully secured a significant majority of the construction costs for the opening of Okada Manila, which is the world class gaming and leisure resort under development in the Philippines,” Universal Entertainment said.
Closing date of the transaction is Oct. 14.
Universal Entertainment issued $600 million worth of privately placed notes last year for repayment of existing short term debts and construction of gaming facility in the country.
Okada Manila is the third integrated resort at Entertainment City in Parañaque. It will occupy over 44 hectares at the foreshore of Manila Bay.
Okada Manila’s entry into the market will tap into the expanding entertainment and tourism of the country.
Okada Manila will offer 993 hotel rooms, 8,409 square meters of retail space and 500 table games and over 3,000 electronic gaming machines.