Genting Bhd is chugging along with construction of its latest venue, Resorts World Las Vegas (RWLV). In an effort to help the property come to life, two of the company’s subsidiaries will see senior bonds in order to help cover the $4-billion construction price tag the resort is expected to carry. If everything goes well and the plan stays on track, the new casino resort in Las Vegas could open before the end of 2020.
In a filing with Bursa Malaysia, Genting said that Resorts World Las Vegas LLC and RWLV Capital Inc. had sold a bond in the amount of $1 billion to help offset the construction costs. The bond has a coupon of 4.625% and the notes are due in 2029, and was coordinated through Barclays, Citigroup and JPMorgan.
Apparently, the bond has been a success. One of the bankers behind the issuance has stated that investors have placed orders totaling $3.8 billion. The deal had been given a BBB+ rating by Standard & Poor’s, which is unusual for an investment in a project that has no cash flow and that has construction risk.
In its filing with Bursa Malaysia, Genting added that proceeds from the bond would go toward funding the “remaining costs associated with the design, development, construction, equipping, financing and opening of the Resorts World Las Vegas casino and integrated resort.”
When RWLV turns on the lights for the first time, it will be the first integrated resort (IR) to come to the Las Vegas Strip in more than 10 years. It is expected to offer a casino, 3,400 hotel rooms, convention and meeting spaces, a spa and wellness facilities and at least 25 food and beverage outlets.
The IR was almost forced to come to a grinding halt recently after Wynn Resorts took issue with how the architectural design was coming along. The company accused Genting of copying its iconic venue, which is located across the street in Las Vegas, and took Genting to court. Genting agreed to make some design changes in order to distinguish the property more and the project was able to continue.