Success Universe Group has announced plans to refinance HK$490 million (US$62.6 million) worth of loans provided for the operations of Macau integrated resort Ponte 16 ahead of their maturity this Friday 23 June 2023.
As per details filed with the Hong Kong Stock Exchange overnight, Pier 16 – Property Development, the operating entity of Ponte 16, will enter into an Amended and Restated Facility Agreement with the lender for revised facilities amounting to HK$230 million (US$29.4 million) and MOP$273 million (US$33.8 million) respectively, with Success Universe to execute security documents as security.
Pier 16 – Property Development is 49% owned by Success Universe and 51% by Macau concessionaire SJM.
Provision of the HK$230 million facility includes HK$200 million (US$25.5 million) to refinance existing facilities and HK$30 million (US$3.9 million) for the general working capital of non-gaming operations at Ponte 16. The MOP$273 million facility is to finance the payment of the land premium and the related costs for the land concession modification, Success Universe explained.
It also noted that its position as guarantor for the loans exposes the group to a total of HK$891 million (US$114 million) in liabilities, comprising the HK$490 million facilities, HK$35 million (US$4.5 million) in interest plus another HK$366 million (US$46.8 million) owed to the group by Pier 16 – Property Development under previously issued shareholder’s loans.
However, Success Universe said it remained confident that such liability was for the long-term benefit of the group as Macau continues to recover from the impact of the COVID-19 pandemic.
“The Group is optimistic about Macau’s future due to its positive recovery momentum, infrastructure developments and positive government policies,” it said. “The ongoing development of the Greater Bay Area Initiative, combined with the continuous growth of Mainland China’s outbound tourism, will support Macau’s position as a global tourism destination.
“The Board believes that the mass market holds the most potential for sustainable growth and Ponte 16 will continue to offer a superior accommodation experience to its customers with a distinctive cultural connotation, in addition to enriching its comprehensive entertainment facilities and initiatives.
“As a casino-entertainment resort located in the exclusive Inner Harbour area of Macau, Ponte 16 will strive to maintain its leading position with the support of its neighboring partners.”
Success Universe previously reported a shared loss in the associates relating to Ponte 16 of HK$42.1 million, narrowed from a loss of HK$48.7 million in 2021, with the average occupancy rate of Sofitel Macau at Ponte 16 just 48% for the year as a result of pandemic-related border restrictions.
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