21 Apr 2009

Sky City bids to cut debt with share issue

8:53 pm on 21 April 2009

Sky City Entertainment is seeking to raise $229 million by issuing new shares, and will use the proceeds to reduce debt.

The casino operator is offering 71 million shares at $2.52 per share to institutional investors, and plans to then offer new shares to retail investors.

Its chief executive Nigel Morrison says that capital raising will reduce the company's debt levels by almost 20%.

Meanwhile, a rights issue by the resins maker, Nuplex closed undersubscribed by 4%, but as it was underwritten, the remaining shares will be taken up by First NZ Capital.

Nuplex will use the money to reduce its debt levels, after it breached its banking convenants last year.