Success Universe to refinance Ponte 16 loans

Success Universe Group aims to refinance up to HK$490m (US$62.6m) in loans.

Macau.- Success Universe Group has reported plans to refinance loans granted to Macau’s Ponte 16 casino. The company aims to secure up to HK$490m (US$62.6m) in refinancing, reflecting potential financial restructuring and optimisation strategies.

According to a filing, Success Universe Group intends to enter into a revised facility agreement with Pier 16 – Property Development Ltd., a company jointly held by World Fortune and SJM-IL, a wholly-owned subsidiary of SJM. The revised facilities are anticipated to amount to HK$230m (US$29.4m) and MOP273m (US$33.8m), for which Success Universe will execute security documents.

The MOP273m (US$33.86m) facility is designated to finance the payment of the Land Premium and the associated costs related to the Land Concession Modification. Additionally, HK$30m (US$3.83m) will be allocated as general working capital for the non-gaming operations of Pier 16.

Success Universe Group has been engaged in discussions with the government regarding its future development projects, including plans for a floating casino. The deputy chairman of the company, Hoffman Ma, expressed optimism and estimated that the upcoming expansion initiatives would require an investment of over HK$100m (US$12.8m). 

At the annual general meeting, Hoffman Ma Ho Man, highlighted signs of recovery in Macau’s tourism industry as the group’s hotel occupancy rate and room prices reached 80 per cent and 85 per cent of 2019 levels.

Ma predicted a quarter-on-quarter increase in Macau’s gaming revenue and anticipated that annual gaming revenue for 2023 will surpass MOP150bn. Success Universe Group’s revenue for 2022 was down 24.1 per cent year-on-year to HK$114.8m, and the company posted a loss attributable to owners of HK$287.1m, down from a HK$4.9m profit in 2021.