April 3, 2019 / 11:49 AM / 5 months ago

UPDATE 1-Resorts World Las Vegas sells debut $1 bln bond to fund resort

(Adds banker comments)

By Julia Fioretti

HONG KONG, April 3 (Reuters) - Resorts World Las Vegas, owned by Malaysian developer and casino resort operator Genting , made its debut on the bond market with a $1 billion sale to fund its $4 billion gaming resort on the Las Vegas strip.

The company said on Wednesday it had sold a $1 billion 10-year bond with a coupon of 4.625 percent, and a $1.6 billion senior secured credit facility to finance the Las Vegas project.

Orders from investors reached $3.8 billion, according to a banker on the bond deal, indicating strong demand, including from U.S. investors that focus on investment-grade issues.

S&P gave the bond a BBB+ rating, a rare investment-grade rating in the sector, bankers said.

One banker who worked on the deal said it was unusual to get an investment-grade rating for a project still in development which has no cashflow and carries construction risk.

Genting is the highest-rated gaming group globally, a Resorts World Las Vegas presentation shows.

The approximately 3,400 room casino resort will be the first new integrated resort to open on the Las Vegas strip in more than 10 years, the presentation said.

It is expected to open by the end of 2020.

Resorts World Las Vegas will have a casino, more than 25 food and beverage outlets, retail outlets, more than 210,000 square feet of spas, health clubs and resort pools as well as a day-and-night club under the Zouk brand.

The resort will also feature more than 300,000 square feet of meeting and conference space, the presentation showed.

Barclays, Citigroup and JPMorgan were joint global coordinators for the bond issue. (Reporting by Julia Fioretti; Editing by Himani Sarkar and Mark Potter)

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