STDM’s loan is for a fixed period of six years from the date of drawdown, with a 4 per cent annual interest rate.
Macau.- SJM Holdings Limited has announced through a company filing that Sociedade de Turismo e Diversões de Macau, S.A. (STDM), its controlling shareholder, had agreed to extend an unsecured term loan of HK$2bn (US$254.8m).
The loan is for a fixed period of six years from the date of drawdown with interest at 4 per cent per annum. Upon receiving the loan, STDM will facilitate SJM Holdings to pre-qualify for the Macau Government’s tender process for a 10-year gaming concession beginning in 2023.
The commission tasked to oversee Macau’s gaming concession retender has announced that the period for submitting bids will run until 5.45pm Macau time on September 14.
Under the executive order, companies must submit some required eligibility documents and pay a minimum deposit of MOP10m (US$1.2m). Casino operators must have a registered capital of at least MOP5bn while their licences are valid.
SJM Holdings has launched a rights issue by which it proposes to raise net proceeds of up to approximately HK$2,936.6m based on one rights share for every four existing shares held on August 29 at a subscription price of HK$2.08 per rights share and assuming no share options under the company’s employee share option scheme are exercised.
Daisy Ho Chiu Fung, chairman of SJM Holdings, stated: “Both the Loan and the Rights Issue bolster the Company’s balance sheet position and liquidity and will place SJM Resorts in a strong position to participate in the tender for new Macau gaming concessions later this year.
“STDM’s strong backing of the Rights Issue and provision of the Loan demonstrates STDM’s and the Company’s confidence in the long-term growth potential of Macau notwithstanding the current difficult operating conditions.”
In June, the company received banks’ approval for its plan to refinance its existing bank loans with a new loan line of HK$19.0bn (US$2.44bn).