Macau gaming investor SJM Holdings has announced a proposed issue of US dollar denominated senior notes, to be used primarily to refinance existing debt obligations.
The notes, to be issued by SJM’s wholly-owned subsidiary Champion Path Holdings Limited, are yet to be priced with any such pricing to be determined by a book building exercise should the offer go ahead. If it does, it could comprise the company’s first major fundraising initiative since the start of the COVID-19 pandemic.
It also follows similar announcements by three other Macau gaming operators in the past month, with Wynn Macau Ltd revealing a US$750 million offer in December, Studio City its own US$750 million offer in early January and Melco Resorts a US$250 million follow-on offer only last week.
“If the Notes are issued, the company intends to use approximately 90% of the net proceeds from the proposed offering for refinancing the Syndicated Credit Facilities and the balance for general corporate purposes,” SJM said.
“The Board believes that there would be significant benefit to the company in effecting the proposed issuance and using the net proceeds for the intended purpose as it would extend the maturity profile of the Group’s indebtedness and reduce the Group’s secured indebtedness.”
The proposed offering comes just weeks after SJM appointed former Chief Financial Officer, Executive Vice President and Executive Director of Sands China Ltd, Ben Toh Hup Hock, as its new CFO.
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