Macau gaming resort operator SJM said in a statement yesterday that it is “pleased to announce” that on Monday it entered into a facility agreement with a banking syndicate led by Industrial and Commercial Bank of China (Macau) Limited for syndicated loan facilities of up to HK$19 billion representing a HK$9 billion Term Loan Facility and a HK$10 billion Revolving Loan Facility.
According to the statement, a substantial portion of the new loan facilities will be used to repay the existing syndicated loan facilities entered into by SJM in September 2016. After the refinancing, the statement noted, SJM will have an additional HK$6 billion of liquidity.
The new loan facilities have a new maturity date of June 20, 2028 and an effective interest rate at HIBOR* or MAIBOR** plus 1.25 percent–2.25 percent, the statement said. For the first six months the effective interest rate will be HIBOR or MAIBOR plus 1.65 percent.
The statement underlined that SJM’s refinancing plan has been approved by the Macau government.
The statement quoted Daisy Ho Chiu-fung, chairperson of the Board of Directors of SJM, as saying that “SJM welcomes this Concession Extension. We are also highly pleased to conclude this week a successful refinancing of our syndicated loan facilities. We are moving ahead on all fronts preparing to participate in the tender for the succeeding concession, and we eagerly look forward to continuing to contribute to the development of Macau in the years to come.”
SJM has said that it is determined to bid for a new gaming concession. STDM, the gaming company co-founded by Stanley Ho Hung-sun held Macau’s casino monopoly concession between March 1962 and April 2002 when SJM, its successor company, signed a new concession agreement with the local government, after winning one of Macau’s three rival gaming concessions in an international tender.
*Hong Kong Inter-bank Offered Rate
** Macau Interbank Offered Rate
