In order to propose acquisition of Australian casino operator, Crown Resorts, Blackstone seeks up to A$5.9bn loan. Based on the advice from Starwood Capital Group, the commitment letter for a senior term loan of up to A$5.4bn was approved with affiliates or fund managers. This also covers entities owned by real estate debt funds managed or advised by Blackstone or its affiliates.
The borrower is SS Silver Finco. Blackstone managed the fund and advised the affiliation. According to a scheme booklet registered with the Australian Securities and Investment Commission, the funding is to propose acquisition and refinance existing debt at Crown Resorts.
The fund would allow Blackstone to own a super senior revolving credit facility.
It is up to A$500m to finance working capital and general corporate purposes. The fund commitment covers Blackstone Real Estate Partners Asia II and Blackstone Real Estate Partners offshore IX. The total is A$2.6bn to fund the acquisition.
Crown announced that Blackstone received confirmation from Australia’s Foreign Investment Review Board that it does not deny the acquisition. In the meeting scheduled on April 29, the company’s shareholders will vote on the acquisition. Shareholders of Crown would receive A$13.10 a share, higher than Blacstone’s first A$11.85bn per share bid previously. So, Crown stated that they will bak A$8.87bn bidding takeover from Blackstone.
If the acquisition does not proceed, Crown should undertake a refinancing of a large component of its existing debt in the near term. This includes A$4560m in bilateral loans and A$300m in loans from non-bank lenders which are maturing in October 2023. In February this year the company won amendments and covenants for its loans for testing. In November and December last year, Crown obtained two new unsecured term loans of A$150m each that mature in October 2023. The casino also raised A$250 debt to redeem the company’s euro medium-term notes, said IFR Asia.
