KUALA LUMPUR (March 2): US-based law firm Cleary Gottlieb Steen & Hamilton LLP represented Genting New York LLC (GENNY) and its wholly-owned subsidiary GENNY Capital Inc in the group’s US$525 million (about RM2.13 billion) bond or senior notes offering, which was listed in Singapore, Global Legal Chronicle reported today.
Casino and hotel operator Genting Malaysia Bhd wholly-owns GENNY, which developed and operates Resorts World Casino New York City, the only licensed casino facility within New York City and one of only two casinos located within 30 miles of the city limits of New York City, according to the Global Legal Chronicle report.
"GENNY executed the inaugural debt offering of US$525 million of 3.300% senior notes due 2026. The notes were offered in a private placement in the United States pursuant to Rule 144A and outside of the United States pursuant to Regulation S.
"The notes offering launched on January 25, 2021, priced on January 27, 2021 and closed on February 10, 2021. The notes were listed on the Singapore Exchange,” the report said.
In addition, GENNY executed the refinancing of its senior secured credit facilities, consisting of a US$350 million delayed draw term loan facility, which includes an accordion feature pursuant to which commitments can be increased by an additional US$50 million, according to the report.
An accordion feature offers a firm the right to increase its credit line with a bank.
The report indicated that GENNY also refinanced its US$25 million revolving credit facility.
"Under the refinancing, the existing term loan facility, the existing construction loan facility and the existing revolving credit facility were refinanced and replaced.
"The new credit agreement amends and restates the applicable rate and certain financial and other covenants set forth in the existing credit agreements. Proceeds from the notes offering were used for the refinancing of the senior secured credit facilities and the transactions closed concurrently,” the report said.
The Cleary Gottlieb Steen & Hamilton team, which advised GENNY and GENNY Capital, included the law firm's partners Craig Brod and Duane McLaughlin, senior attorney Victor Chiu, associates Patrick Courtien, Jeff Shim, Stephen Janda and Yonatan Hassin and law clerks James Abate and Elizabeth Hamilton, according to Global Legal Chronicle.
It was reported that the law firm’s partner Steve Wilner and associates Christopher Bachand-Parente and Norian Watson advised on real estate matters.
“Partner (of Cleary Gottlieb Steen & Hamilton) Daniel Ilan and practice development lawyer Megan Medeiros advised on IP (Intellectual property) matters,” the report said.
The report said Cleary Gottlieb Steen & Hamilton counsel Rick Bidstrup and Beau Sterling and associate Madison Bush advised on environmental matters, while the law firm’s partner Jason Factor, senior attorney David Stewart Fisher and associate Eric Gruebel advised on tax matters.
Genting Malaysia had initially announced on Jan 29, 2021 to Bursa Malaysia the pricing of the US$525 million senior notes on Jan 27, 2021,
According to Genting Malaysia’s announcement, S&P Global Ratings and Fitch Ratings Ltd had assigned a rating of BBB- to the notes.
Wells Fargo Securities, DBS Bank Ltd, BoFA Securities and BNP Paribas are the joint global coordinators and joint bookrunners for the bond offering.
On Feb 15, 2021, Genting Malaysia said in a Bursa filing that the notes have been issued by GENNY and GENNY Capital, and were listed on the Singapore Exchange on February 11, 2021.
At Bursa today, Genting Malaysia’s share price closed up three sen or 1.02% at RM2.98 at 5pm for a market value of about RM16.84 billion. Genting Malaysia has 5.65 billion issued shares.
Genting Bhd owns a 49.5% stake in Genting Malaysia, according to the former’s website.