Genting subsidiaries offer $1 billion in notes to fund Resorts World Las Vegas
The money is to be used for the resort’s construction
After a minor setback due to a dispute with Wynn Resorts, Resorts World Las Vegas is moving forward. The Genting Bhd-owned property is under construction and the company has announced that two of its subsidiaries are offering senior bonds worth $1 billion to help fund the continued construction, which is estimated to run about $4 billion. The bond has a coupon of 4.626% and is due in 2029.
Resorts World Las Vegas LLC and RWLV Capital Inc. offered the bond, which was coordinated by JP Morgan, Citgroup and Barclays. The offering was a success, as it has been revealed that orders have been placed for a total of $3.8 billion. Standard & Poor’s had given the bond a BBB+ rating, an unusual stance for a product that is not developing cash flow and which as construction risks.
According to Genting, the bond will fund the “remaining costs associated with the design, development, construction, equipping, financing and opening of the Resorts World Las Vegas casino and integrated resort.”
Earlier this year, Genting and Wynn Resorts got into an argument after Genting was accused of copying the Wynn Resorts design. Resorts World Las Vegas sits across the street from the Wynn Resorts property and Wynn sued to have the construction halted. Genting ultimately agreed to make several design changes so its property would be more distinct and the project was allowed to continue.
Resorts World Las Vegas is expected to be open by the end of next year. It will be the first integrated resort added to the Las Vegas Strip in ten years and will offer a casino, a hotel with 3,400 keys, convention spaces, a spa and wellness center and at least 35 food and beverage facilities.