International Entertainment settles debts after DigiPlus-backed notes deal

The firm said it has now redeemed all promissory notes and cleared its secured bank facilities.

Hong Kong.- International Entertainment Corporation (IEC) has announced the full settlement of its outstanding debt obligations funded by capital raised through a convertible notes agreement with DigiPlus Interactive Corp. In a filing to the Hong Kong Stock Exchange on Wednesday, the firm said it had redeemed all promissory notes and cleared its secured bank facilities.

The HK$1.6bn (US$205.1m) subscription notes arrangement is divided into two equal tranches of HK$800m (US$102.6m), with the first finalised in early March. Some HK$489.22m (US$62.7m) of the net proceeds from the first payment was allocated to settle promissory note obligations, while HK$392.39m (US$50.3m) was used to repay secured bank debt.

Alongside debt repayment, the proceeds are expected to fund the redevelopment of New Coast Hotel Manila, an integrated hotel and casino complex operated under a licence from the Philippine Amusement and Gaming Corporation. IEC has indicated that it is working towards a July “grand reopening” of the resort after completing ground-floor renovation works in January.

The second tranche is expected to be completed within three months of the first issuance, subject to mutual agreement. Following full conversion at an initial rate of HK$1.00 per share, DigiPlus will have a 53.89 per cent stake in the enlarged share capital, giving it effective majority control of the group.

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See also: IEC completes first HK$800m tranche of DigiPlus convertible notes deal

The firm said it has now redeemed all promissory notes and cleared its secured bank facilities. Hong Kong.- International Entertainment Corporation (IEC) has announced the full settlement of its outstanding debt obligations funded by capital raised through a convertible notes agreement with DigiPlus Interactive Corp. In a filing to the Hong Kong Stock Exchange on…