Shun Tak re-opens unrated market with debut bond

Macau conglomerate Shun Tak issued a $400 million seven-year debut bond late last week, helping to re-open the market for unrated paper after the lunar new year break.

Stanley Ho and his family own a majority stake in the company, which enjoys strong name recognition among investors despite being unrated. Much of the Macau dollar paper outstanding is from the gaming sector, and Shun Tak was also the first Macau conglomerate to issue a US dollar bond.

The initial price talk was in the 6% area, and this was revised to a final guidance of 5.7% to 5.8%, with the bonds pricing at the tight end. The...