13 Holdings to Raise $223 Million for Ultra-Luxury Macau HotelBy
Transaction includes HK$1 billion rights offering plus debt
Funding needed to enable hotel to open by end of March 2018
13 Holdings Ltd., the owner of a planned luxury hotel in Macau that will chauffeur guests in Rolls-Royces, intends to raise HK$1.74 billion ($223 million) through a combination of rights issue and debt to complete the project.
The funds, together with a HK$250 million bridge loan, will allow the company to open the 13 Hotel by the end of March next year, the Hong Kong-based company said late Friday in a statement. The hotel management contractor, with a market value of about $107 million, plans to hold a HK$1 billion rights offering and intends to raise as much as HK$740 million through debt, according to the statement. Bloomberg earlier Friday cited people familiar saying the company planned to raise the funds.
The company, which has raised more than $1 billion for the project, has struggled to open the hotel that was originally designed to lure Chinese high-rollers with $1,500-a-night suites with Roman baths. Gaming revenue from VIPs probably grew about 19 percent last month in Macau, faster than the estimated 13 percent increase for mass-market gamblers, according to monthly estimates from IMC.
The company applied to the Hong Kong stock exchange to resume trading of its shares, which was halted Oct. 19 pending the announcement, on Monday. The stock has tumbled 60 percent this year, and gained 2.3 percent to HK$0.91 on Oct. 19 before the halt.
Get Nice Finance agreed to provide 13 Holdings a one-year loan of HK$250 million, according to a stock exchange statement on Oct. 19. The loan, to be used for non-construction costs for the completion of the hotel and general working capital, carries an annual interest rate of 18 percent.
— With assistance by Will Davies