{"id":30251,"date":"2022-05-30T04:27:43","date_gmt":"2022-05-30T07:27:43","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=30251"},"modified":"2026-04-23T08:18:18","modified_gmt":"2026-04-23T11:18:18","slug":"authorities-approve-sjm-holdings-refinance-plan","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/authorities-approve-sjm-holdings-refinance-plan","title":{"rendered":"Authorities approve SJM Holdings refinance plan"},"content":{"rendered":"\n

The government of Macau has finally approved a revolving loan facility for HK$19bn (US$2.44bn) to refinance SJM’s existing financing.<\/p>\n\n\n\n\n\n\n\n

Macau.- Morgan Stanley Asia Ltd has reported that authorities in Macau have approved\u00a0SJM Holdings’ plan to refinance its existing bank loans\u00a0<\/strong>with a new loan line of HKD19.0bn (US$2.44bn). Only the banks’ approval is now needed for it to be effective.<\/p>\n\n\n\n

According to analysts Praveen Choudhary and Gareth Leung, the refinancing would provide the company with HK$6bn of additional liquidity as it draws down HK$13bn of previous loans. The new maturity date for the lines would be 2028. The effective interest rate would be the Hong Kong Interbank Offered Rate (HIBOR) plus 1.5 per cent to 2.25 per cent, terms similar to those on the present facility.<\/p>\n\n\n\n

SJM Holdings<\/a>\u00a0revealed that it could access a HK$5bn (US$637m) loan from controlling shareholder STDM a day after posting\u00a0a loss of HK$1.28bn (US$163.4m)<\/a>\u00a0<\/strong>for the first quarter of the year. Its outlook is uncertain since, according to analysts,\u00a0the casino operator has only three months of liquidity <\/strong>at its current level of outgoings, mainly due to the expenses at the Grand Lisboa Palace casino resort complex.<\/p>\n\n\n\n

Analysts previously stated that SJM Holdings\u2019 operating expense was \u201clikely to rise from the second half of 2022 amid the\u00a0likely closure of some satellite casinos<\/a>\u201d as they believed SJM Holdings would have to bring gaming staff onto its own payroll. \u201cThis would shorten its liquidity runway even further, analysts noted.<\/p>\n\n\n\n

The company has recently announced its purchase of the Oceanus property where the group currently operates the Oceanus casino<\/a>. The HK$1.91bn (US$242.8m) acquisition is subject to the fulfilment of certain conditions, including approval of the transfer by independent shareholders at a general meeting scheduled for June 22.<\/p>\n\n\n\n

The sum to be paid by SJM Holdings comprises HK$516m for the non-gaming area and HK$1.3m for the Oceanus casino area<\/strong>. The motivation for the purchase is the extension of the company\u2019s concession contract with the Macau government, allowing it to meet a new property ownership requirement.<\/p>\n","protected":false},"excerpt":{"rendered":"

The government of Macau has finally approved a revolving loan facility for HK$19bn (US$2.44bn) to refinance SJM’s existing financing.<\/p>\n","protected":false},"author":176,"featured_media":25400,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Macau authorities have approved SJM Holdings' HK$19bn revolving loan facility to refinance existing debt, extending maturity to 2028 and providing HK$6bn in additional liquidity. This strategic financial maneuver, alongside the acquisition of the Oceanus property, aims to address the operator's liquidity challenges, rising operational expenses, and fulfill concession contract property ownership requirements amidst an uncertain market outlook.","focusai_entities":"SJM Holdings, Morgan Stanley Asia Ltd, STDM, Praveen Choudhary, Gareth Leung, Grand Lisboa Palace, Oceanus","focusai_location":"Macau, Hong Kong","focusai_target_profile":"ceo_executive (0.95), regulator (0.85), compliance_legal (0.75), operator_casino (0.9), investor_analyst (0.98), supplier_vendor (0.7), journalist_researcher (0.95)","focusai_suggestions":[{"label":"Liquidity Impact Analysis","query":"Beyond the HK$6bn additional liquidity, what are the projected long-term impacts of this refinancing on SJM Holdings' debt-to-equity ratio and overall financial leverage?"},{"label":"Concession Renewal Strategy","query":"How does the Oceanus property acquisition specifically align with the Macau government's updated concession property ownership requirements, and what other conditions must SJM fulfill for renewal?"}],"footnotes":""},"categories":[157,16338,158],"tags":[23108],"class_list":["post-30251","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","category-slider-home","tag-sjm-holdings"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/30251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=30251"}],"version-history":[{"count":4,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/30251\/revisions"}],"predecessor-version":[{"id":30275,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/30251\/revisions\/30275"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/25400"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=30251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=30251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=30251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}