Travellers hotel group prints $300 million high-yield bond

Travellers International Hotel Group, jointly owned by Alliance Global and Genting Hong Kong, issued a debut $300 million high-yield bond late Wednesday.

The Reg-S senior unsecured bond pays a 6.9% coupon and was reoffered at 98.777 for a yield of 7.125%. This represents the lowest-ever yield achieved by an Asian gaming company. The deal also bears the lowest-ever coupon among unsecured US dollar bond offerings by gaming companies globally, even though the bonds came to market unrated -- an all-too familiar path for Philippine corporate issuers.

However, Travellers' parent companies are both well capitalised. Alliance Global issued its own debut high-yield bond in August in the form of a $500 million seven-year transaction, and Genting Hong Kong is ultimately held by Malaysia's Lim family and Genting Malaysia.