SJM secures the refinancing of syndicated loans

Gaming operator SJM Resorts has announced that it has reached an agreement with a banking syndicate led by the Industrial and Commercial Bank of China (Macau) for syndicated credit 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 credit facilities entered into by SJM in September 2016. Following the refinancing, SJM will have an additional HK$6 billion in liquidity,” SJM said in a statement.

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

Industry analysts have previously raised concerns about SJM’s liquidity, which brokerage firm JP Morgan deemed in April to be “somewhat worrying”.

The announcement made the same day SJM and the other six gaming licensees and sub-licensees have been granted a six-month extension of their contacts until December 31.

In the same release, Daisy Ho, Chair of the Board of SJM, is quoted as being very pleased to conclude a successful refinancing of our syndicated credit facilities this week. Ms. Ho adds that the company is making progress on all fronts as it prepares to participate in the tender for the next concession, and we look forward to continuing to contribute to Macau’s development in the years to come.

Richard F. Gandhi