Macau concessionaire SJM Resorts says it has successfully completed the refinancing of up to HK$19 billion (US$2.44 billion)in syndicated loan facilities – extending its liquidity runway while it navigates the COVID-19 pandemic.
The new facility agreement, led by Industrial and Commercial Bank of China (Macau) Limited, was signed on 20 June representing a HK$9 billion (US$1.15 billion) Term Loan Facility and a HK$10 billion (US$1.28 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, the company said, while providing SJM with an additional HK$6 billion (US$769 million) of liquidity.
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% to 2.25%. For the first six months the effective interest rate will be HIBOR or MAIBOR plus 1.65%.
“We are highly pleased to conclude this week a successful refinancing of our syndicated loan facilities,” said SJM Chairman Daisy Ho.
“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.”
Bernstein analyst Vitaly Umansky stated in a note earlier this week that SJM “has been in the most precarious liquidity position,” as a result of the pandemic impact – which has seen Macau’s six concessionaires losing a combined US$800 million per quarter – but said the new syndicated loan facilities “may bridge any near-and-medium-term liquidity needs.”
