The Macau operator has entered two agreements to sell senior notes and cancel facilities obtained for the construction of Grand Lisboa Palace.
Macau.- SJM Holdings has entered two agreements to sell senior notes for a total of almost US$1bn in order to use the proceeds to cancel bank loans related to the construction of Grand Lisboa Palace.
One of the operations was for US$500m in 4.5 per cent US dollar-denominated senior notes issued by a subsidiary, Champion Path Holdings, and due 2026.
The remaining amount, another US$500m was issued in 4.85 per cent senior notes due 2028.
The company said it expects to raise US$991m after deducting discounts and estimated expenses.
About 90 per cent of that will be destined to refinancing secured bank loans for the Grand Lisboa Palace project and the rest for general corporate purposes.
Some US$79.5m of the notes have been acquired by the controlling shareholder, STDM, and directors of SJM Holdings.
SJM’s secured bank loans amount to almost HK$20.6bn, US$260m and MOP2.3bn in term loan facilities.
Grand Lisboa Palace’s opening in the Cotai district is expected in the first quarter of 2021.
Fitch Ratings recently forecast that the venue will generate EBITDA of HK$2bn (US$258m) by 2022 and HK$3.5bn (US$451m) by 2023.