SkyCity (ASX:SKC) secures debt covenant relief

Gambling giant SkyCity Entertainment (ASX:SKC) has secured a debt covenant waiver for the 31 December 2021 testing period and a variation to the debt covenants for the 30 June 2022 testing period.

Formal documentation has been executed with SkyCity’s banking syndicate and US Private Placement holders. The waiver and variation period will be lifted when SkyCity meets the standard covenant test on the prescribed dates. 

In conjunction with the debt covenant relief, SkyCity has also secured additional debt facilities of $50 million from its banking syndicate, which increases Skycity’s liquidity headroom over the medium-term, according to SkyCity. 

Other than the amendmants outlined, there are no material changes to the terms of the existing debt facilities, the company said.

Shares in SkyCity Entertainment (ASX:SKC) are trading 1.7 per cent lower at $2.89.