Genting Malaysia Raises $525M Through Senior Unsecured Notes

Genting Malaysia Berhad has made headlines with the announcement of a strategic financial maneuver designed to strengthen its position in the competitive gaming industry. The company is set to offer $525 million in 7.25% Senior Unsecured Notes due in 2029 through its US subsidiaries, Genting New York LLC and GENNY Capital Inc. This move comes with a rating of BB+ from S&P Global Ratings and a BBB- evaluation with a negative outlook from Fitch Ratings, underscoring the cautious confidence in Genting’s financial stability amid market fluctuations.

The approval for listing these notes on the Singapore Exchange Securities Trading Limited (SGX-ST) marks an important step forward. The proceeds are intended primarily to refinance existing debts of Genting New York, particularly targeting the $525 million in Senior Unsecured Notes maturing in 2026 and a $175 million secured term loan.

In conjunction with this issuance, Genting New York is also planning to engage in a new Senior Secured Credit Facility, comprising a delayed draw term loan facility worth $775 million and a $150 million revolving credit facility. The total financial package amounts to a substantial $1.45 billion, reflecting Genting’s ambitious strategy to optimize capital structure and manage liabilities effectively.

This financial restructuring is particularly timely as Genting New York vies for a full-scale casino license in the lucrative downstate New York market. With fierce competition expected, the potential license could significantly enhance the group’s market reach, improve geographic diversification, and possibly reduce the gross gaming revenue tax currently at a steep 67%.

The anticipation of license awards by the second half of 2025 adds urgency to Genting’s financial maneuvers. Fitch Ratings has placed a “Rating Watch Negative” on Genting New York, largely hinging on the outcome of this licensing bid. In the event that Genting does not secure this license, the strategic significance and the prospects of support from Genting Berhad could weaken, potentially affecting future ratings.

Analysts project that Genting Malaysia will see revenue growth driven by rebounding domestic traffic and increasing international tourism, bolstered by infrastructure improvements such as the repair of an access road connecting Batang Kali to Genting Highlands. This development is expected to enhance access and popularity of Genting’s resorts, adding to the company’s robust growth trajectory across all segments.

Kelsey Wilhelm, a journalist renowned for her insights in the gaming industry, has provided comprehensive coverage on this topic, highlighting the significant impact of these financial developments within the broader gaming sector. As Genting Malaysia continues to navigate the competitive landscape, its strategic financial initiatives are poised to play a key role in its future success.