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Crown Resorts – Half Year Results 2016

The primary story surrounding Crown is speculation regarding the privatisation of the company or part thereof.

 

In December 2015 when James Packer resigned as a director of Crown which effectively removed any potential conflicts of interest between his interest and the boards responsibility to sharholders. At this stage all scenarios are speculative and although the press has announced possible privatisation partners (i.e Canadian Pension Plan Investment Board and Blackstone Real Estate) the has been no confirmation of any intention by the Crown board (note that management refused to speculate on any corporate action during the results).

 

The credit outlook for Crown is driven by uncertainty surrounding the large capital expenditure pipeline (Including Alon Las Vegas and the Melbourne Queensbridge Hotel Tower) and how the group intends to fund these projects without increasing leverage above rating agency maximums.

 

Our reports for Crown Resorts:

  • Crown Subordinated Notes. Click here.
  • Crown Subordinated Notes II. Click here 

 

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