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Nicholas Grove is a Morningstar journalist.

Crown Limited (CWN) has announced plans to issue $400 million in debt, with the proceeds going towards improvements at its casino properties in Melbourne and Perth.

"Crown Subordinated Notes represent a new investment opportunity in Crown and will be available to institutional and retail investors, including Crown's eligible shareholders," Crown chief financial officer Ken Barton said.

"Crown is one of Australia's largest entertainment groups and operates two of the premier integrated resorts in the country, Crown Melbourne and Burswood. Crown is currently undertaking a range of capital expenditure programs across these properties.

"The projects are expected to enhance Crown's position as one of the leading operators of integrated resorts in the region."

In a statement, Barton also said the debt offer will diversify Crown's funding sources and provide greater flexibility to refinance upcoming debt maturities.

Crown Subordinated Notes are dated, unsecured, subordinated, cumulative notes and have a first call date on 14 September 2018 and a final maturity on 14 September 2072.

The notes entitle holders to receive floating-rate, cumulative interest payments quarterly in arrears, subject to deferral, Crown said.

Interest payments will be calculated on a quarterly basis as the sum of the three-month bank bill rate plus the margin.

The margin will be determined following a bookbuild and is expected to be 5.00 per cent per annum, the company said.

If the notes are not redeemed by 14 September 2038, the margin will increase by 1.00 per cent.

The notes are intended to be quoted on the Australian Securities Exchange (ASX) and are not convertible into ordinary shares or any other securities, Crown said.

One of Crown's major shareholders, billionaire James Packer's Consolidated Press Holdings, has indicated to Crown its intention to participate in the offer in respect of $100 million of notes.

Last week, Crown announced a 22 per cent rise in normalised net profit for fiscal 2012 to $415 million, in line with Morningstar's expectations for a figure of around $413 million.