Gaming operator SJM Holdings has announced that its controlling company STDM has agreed to extend an unsecured term loan of HK$2 billion.
The six-year loan, with a 4 per cent interest rate per annum, is provided for investing in SJM Holdings’ subsidiary gaming concessionaire SJM Resorts. The operation is “part of the increase in share capital which SJM Resorts is required to have to pre-qualify for the tender process by which the Macau Government may grant SJM Resorts a 10- year gaming concession commencing on 1 January 2023”, according to a press release issued by the company on Wednesday night.
SJM Holdings also announced that it will raise net proceeds of up to approximately HK$2,936.6 million.
The same announcement states that STDM has agreed “to take up its full entitlement and to apply for excess applications representing 50% of the maximum excess rights shares”.
The remaining half will be underwritten by BNP Paribas Securities (Asia) Limited.
“Both the Loan and the Rights Issue bolster the Company’s balance sheet position and liquidity and will place SJM Resorts in a strong position to participate in the tender for new Macau gaming concessions later this year”, said Daisy Ho, Chairman and Executive Director of SJM Holdings Limited, as quoted in the same press release.
In June SJM Resorts announced that it had 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.
