{"id":32403,"date":"2022-08-05T06:27:14","date_gmt":"2022-08-05T09:27:14","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=32403"},"modified":"2026-04-23T06:11:15","modified_gmt":"2026-04-23T09:11:15","slug":"us254-8m-loan-will-help-sjm-cope-with-cash-burn","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/us254-8m-loan-will-help-sjm-cope-with-cash-burn","title":{"rendered":"US$254.8m loan will help SJM cope with cash burn"},"content":{"rendered":"\n

Moody’s Investors Service Inc. said the loan will boost SJM Holdings\u2019 financial buffer by trimming its reliance on debt to cover its cash burn.<\/p>\n\n\n\n\n\n\n\n

Macau.- Analysts at Moody’s Investors Service have issued a memo referring to the recent\u00a0SJM Holdings Limited announcement\u00a0<\/strong>regarding an\u00a0unsecured term loan of HK$2bn (US$254.8m)<\/a>\u00a0granted by Sociedade de Turismo e Divers\u00f5es de Macau, S.A. (STDM).<\/p>\n\n\n\n

According to the agency,\u00a0the loan will help the casino operator cope with any cash burn<\/strong>\u00a0for at least the next 18 months. The rating agency estimated that by the end of September, SJM’s sources of liquidity would have increased by at least 45 per cent from the end of June.<\/p>\n\n\n\n

In currency terms, this would be between HK$9bn and HK$9.5bn, including about HK$4bn available for withdrawals under the revolving credit facility, compared with HK$6.2bn of liquidity at the end of June.<\/p>\n\n\n\n

It said: “The around HK$3bn in additional equity will boost SJM Holdings\u2019 financial buffer by trimming its reliance on debt to cover its cash burn.”<\/p>\n\n\n\n

The loan SJM received from its controlling shareholder 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\u00a0Macau Government\u2019s tender process<\/a>\u00a0for a 10-year gaming concession beginning in 2023.\u00a0\u00a0<\/p>\n\n\n\n

Daisy Ho Chiu Fung<\/strong>, chairman of SJM Holdings, stated: \u201cBoth the Loan and the Rights Issue bolster the Company\u2019s 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.<\/p>\n\n\n\n

\u201cSTDM\u2019s strong backing of the Rights Issue and provision of the Loan demonstrates STDM\u2019s and the Company\u2019s confidence in the long-term growth potential of Macau notwithstanding the current difficult operating conditions.\u201d<\/p>\n\n\n\n

The company<\/a> has recently reported a net loss of nearly HK$2.76bn (US$351.2m) for the first half of the year. The figure was up 88 per cent when compared to losses recorded in the first half of 2021 (HK$1.46bn).<\/p>\n\n\n\n

Mass-market and VIP gaming segments both performed below expectations, resulting in a decline of 20.9 per cent in revenue to HK$4.13bn (US$525.9m). Adjusted EBITDA<\/strong> came in at HK$1.18bn in compared to a negative HK$510m recorded in the prior-year period.<\/p>\n\n\n\n

Net gaming revenue was up 24.9 per cent year-on-year to HK$3.81bn while mass-market table GGR was down 21.7 per cent to HK$3.44bn.\u00a0VIP gross revenue<\/strong>\u00a0for the first half stood at HK$386.9m, down 54.8 per cent, while revenue from slot machines was down 6.3 per cent year-on-year to HK$248m.<\/p>\n","protected":false},"excerpt":{"rendered":"

Moody’s Investors Service Inc. said the loan will boost SJM Holdings\u2019 financial buffer by trimming its reliance on debt to cover its cash burn.<\/p>\n","protected":false},"author":176,"featured_media":11354,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"SJM Holdings has secured a HK$2bn unsecured term loan from its controlling shareholder, STDM, significantly enhancing its liquidity and financial buffer. This capital injection is critical for SJM to pre-qualify and strengthen its position in the upcoming Macau Government's tender process for new 10-year gaming concessions. The move comes despite the operator reporting substantial H1 net losses and declines across mass-market and VIP GGR segments.","focusai_entities":"Moody\u2019s Investors Service Inc., SJM Holdings Limited, Sociedade de Turismo e Divers\u00f5es de Macau, S.A. (STDM), Daisy Ho Chiu Fung, SJM Resorts","focusai_location":"Macau","focusai_target_profile":"ceo_executive (1.0), regulator (0.9), compliance_legal (0.7), operator_casino (1.0), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (1.0)","focusai_suggestions":[{"label":"Concession Tender Impact","query":"How does this HK$2bn unsecured loan from STDM specifically alter SJM Holdings' competitive standing and financial viability assessment for the upcoming Macau gaming concession tender, particularly given the reported H1 net losses and GGR declines?"},{"label":"Liquidity & Debt Structure","query":"Beyond the immediate cash burn mitigation, what are the long-term implications of this shareholder loan on SJM Holdings' overall debt structure, cost of capital, and future access to diversified financing, especially considering the 4% interest rate over six years?"}],"footnotes":""},"categories":[16338,163,158],"tags":[23108],"class_list":["post-32403","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-east-asia-news","category-finance-news","category-slider-home","tag-sjm-holdings"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/32403","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=32403"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/32403\/revisions"}],"predecessor-version":[{"id":32421,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/32403\/revisions\/32421"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/11354"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=32403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=32403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=32403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}