Macau concessionaire SJM Resorts said it had successfully completed the refinancing of up to HK$19 billion ($2.44 billion) in syndicated credit facilities, extending its liquidity trail while navigating in the COVID-19 pandemic.
The new facility agreement, led by Industrial and Commercial Bank of China (Macau) Limited, was signed on June 20 and represents a HK$9 billion ($1.15 billion) term loan facility and a HK$10 billion ($1.28 billion) revolving loan facility.
A substantial portion of the new loan facilities will be used to repay existing syndicated credit facilities entered into by SJM in September 2016, the company said, while providing SJM with HK$6 billion ($769 million) of liquidity. additional.
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%. For the first six months, the effective interest rate will be HIBOR or MAIBOR plus 1.65%.
“We are very pleased to conclude a successful refinancing of our syndicated credit facilities this week,” said SJM President Daisy Ho.
“We are making progress on all fronts as we prepare 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.”
Bernstein analyst Vitaly Umansky said in a note earlier this week that SJM “was in the most precarious liquidity position”, due to the impact of the pandemic – which has seen Macau’s six dealers losing US$800 million per quarter – but said the new syndicated credit facilities “could meet any short-to-mid-term liquidity needs”.