Macau casino operator Galaxy Entertainment Group is attempting to raise more than US$1 billion to complete the construction of its Cotai mega resort, according to three people with direct knowledge of the plans.
Details of the financing package had yet to be finalised but might include high-yield or convertible bonds, syndicated bank loans or a combination of bonds and bank debt, they said.
Financial adviser Merrill Lynch has been sounding out potential investors to gauge appetite for the deal, according to one hedge fund manager who was approached by the United States investment bank.
Spokesmen for Merrill and Galaxy declined to comment.
Galaxy announced last week that it planned to resume full-scale construction of its 2,200-room, three- hotel Cotai casino resort complex and set an opening date for the first quarter of 2011.
The company raised the budget for the project about 40 per cent to HK$14.1 billion from a previous cost estimate of HK$10 billion, because of design changes.
Executives said last week the firm was in active negotiations over financing options for Cotai and hoped to finalise a deal before the end of the year. Galaxy had already spent about HK$5.1 billion towards the total Cotai budget at the end of September. It had HK$3.8 billion cash on hand and HK$4.5 billion in long-term debt that matures between next year and 2012.
