SJM confirms new $2.4 billion loan facility
Macau casino operator SJM Holdings Ltd said the group had reached an agreement for new syndicated credit facilities of up to HKD 19 billion ($2.42 billion), representing a term loan facility of HKD 9 billion and a revolving loan facility of HKD 10 billion.
The deal is with a syndicate of banks led by the Industrial and Commercial Bank of China (Macao) Ltd, the casino company said in a filing on the Hong Kong Stock Exchange on Thursday.
SJM Holdings opened its new HKD 39 billion Cotai resort, the Grand Lisboa Palace (pictured), in July last year.
A substantial portion of the new loan facilities “will be used to repay existing syndicated loan facilities” under SJM Resorts Ltd, the unit that owns the Macau gambling concession.
“After the refinancing, SJM Resorts will have HKD 6 billion of additional liquidity,” the parent company added.
The new loan facilities mature on June 20, 2028, with an effective interest rate equal to the Hong Kong Interbank Offered Rate (HIBOR) or Macau Interbank Offered Rate (MAIBOR), plus a range between 1.25 % and 2.25%.
“For the first six months, the effective interest rate will be HIBOR or MAIBOR plus 1.65%,” SJM Holdings said, adding that the refinancing plan “has been approved by the Macau government.”
SJM Holdings chairman and chief executive Daisy Ho Chiu Fung said earlier this month that the company should be able to draw on the new loan facility in the current month.