As set out in the Prospectus, the Leverage Ratio and Interest Cover Ratio will be tested every six months to determine whether or not a Mandatory Deferral Event exists in respect of Crown Subordinated Notes II.
As at 31 December 2015, no Mandatory Deferral Event existed.
A Mandatory Deferral Event exists if Crown's Interest Cover Ratio in relation to a Testing Date is less than the Minimum Level (being 2.5 times) or if Crown's Leverage Ratio in relation to two consecutive Testing Dates is above the Maximum Level (being 5.0 times). A Mandatory Deferral Event will continue until Crown's Interest Cover Ratio in relation to a Testing Date is above the Minimum Level and the Leverage Ratio has not been above the Maximum Level in relation to two consecutive Testing Dates.
The Interest Cover Ratio is calculated as Normalised EBITDA1for the relevant six month period divided by Relevant Net Interest paid for the relevant six month period.
The table below shows the Interest Cover Ratio for the six month period ended 31 December 2015.
6 months ended 31 December 2015 ($m) | |
Normalised EBITDA1 | 424.4 |
Interest paid | 92.4 |
Interest received | (7.5) |
Net Interest Paid | 84.9 |
(19.2) | |
Relevant Net Interest Paid | 65.7 |
Interest Cover Ratio (times) | 6.5 |
Minimum Level (times) | >2.5 |
The Leverage Ratio is calculated as Relevant Gross Debt (divided by two) for the relevant six month period to Normalised EBITDA for the relevant six month period.
Relevant Gross Debt is calculated in accordance with the Terms as Adjusted Gross Debt3less the outstanding balance of Crown's debt which is ascribed Equity Credit.
The table below shows the Leverage Ratio for the six month period ended 31 December 2015.
6 months ended 31 December 2015 ($m) | |
Gross debt | 3,192.6 |
(566.5) | |
Relevant Gross Debt | 2,626.0 |
Relevant Gross Debt (divided by two) | 1,313.0 |
Normalised EBITDA | 424.4 |
Leverage Ratio (times) | 3.1 |
Maximum Level (times) |
Enquiries - Ken Barton, Chief Financial Officer, 03 9292 8824
Copies of previous media and ASX announcements issued by Crown are available at Crown's website at www.crownresorts.com.au
Not for distribution in the United States
This release does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States (as defined in Regulation S of the U.S. Securities Act of 1993, as amended ("U.S. Securities Act")). The Notes have not been, and will not be, registered under the U.S. Securities Act and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction subject to, the registration requirements of the U.S. Securities Act and any other applicable laws.
Crown Resorts Limited issued this content on 25 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 24 February 2016 23:17:29 UTC
Original Document: http://www.crownresorts.com.au/Investors-Media/ASX-Media-Releases/2016/25-02-2016-Crown-Subordinated-Notes-II-Key-Financi