Hong Kong-listed International Entertainment Corp says it has fully settled key debt obligations using proceeds from a recent deal that saw Philippines-listed DigiPlus Interactive Corp subscribe to notes in International Entertainment.
In a Wednesday filing, International Entertainment confirmed that it had utilised part of the net proceeds from the first tranche of subscription notes – amounting to HKD800.0 million (US$102.5 million) – to repay outstanding liabilities, in line with earlier disclosed plans.
The firm stated that about HKD489.22 million had been used for repayment of promissory notes, while circa HKD392.39 million was allocated to settle secured bank borrowings.
“The board is pleased to announce that… the company has fully repaid and redeemed all the promissory notes and has fully repaid the secured bank borrowing,” International Entertainment said in the update.
The subscription forms part of a broader HKD1.60-billion convertible note agreement with DigiPlus, which – if fully converted – would result in DigiPlus holding a 53.89-percent stake in International Entertainment.
The proceeds are also intended to support the redevelopment of the New Coast Hotel Manila into an integrated resort, and to aid requirements for general working capital.
The first tranche of the notes was issued on March 3, with a second tranche expected within three months, subject to agreement between the parties.
In the Philippines, DigiPlus runs BingoPlus, described as the country’s first government-approved online bingo platform. It also operates ArenaPlus, a sportsbook, and GameZone, a platform for casual and arcade gaming.
DigiPlus’ president, Andy Tsui, said in recent comments that the company would establish what he described as an “integration team” to help incorporate its online gaming expertise in the land-based casino operations linked to the New Coast Hotel Manila.
The complex has a provisional casino gaming licence from the Philippine Amusement and Gaming Corp (Pagcor).
International Entertainment said recently that it was aiming for a “grand reopening” in July of the New Coast Hotel Manila. In January, the company completed renovation work on the casino’s ground floor.
Mr Tsui said the company expects to make the final payment related to the acquisition of the International Entertainment’s notes “before the end of May or in early June”.
