SJM secures refinancing of syndicated loan facilities

Gaming operator SJM Resorts has announced that it has reached an agreement with a banking syndicate led by Industrial and Commercial Bank of China (Macau) for syndicated loan facilities of up to HK$19 billion. The arrangement represents a HK$9 billion term loan facility and a HK$10 billion revolving loan facility. 

“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, SJM will have an additional HK$6 billion of liquidity,” SJM said in a statement.

The new loan facilities have a new maturity date of 20 June 2028 and an effective interest rate at HIBOR [Hong Kong Interbank Offered Rate] or MAIBOR [Macau Interbank Offered Rate] plus 1.25%–2.25%, it added. The plan has been approved by the Government. 

Industry analysts have previously raised concerns over SJM’s liquidity, which was deemed in April by brokerage JP Morgan as “somewhat worrying”.

The announcement as made on the same day SJM and the other six gaming concessionaires and subconcessionaires were granted a six-month extension of their contacts until December 31.

In the same statement, Daisy Ho, Chairman of the Board of Directors of SJM, is quoted as being highly pleased to conclude this week a successful refinancing of our syndicated loan facilities.” Ms Ho adds that the company is 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.”