Macau casino operator SJM Holdings Ltd has completed a previously-announced offering to investors, issuing US$540-million in senior unsecured notes, according to a Thursday filing to the Hong Kong Stock Exchange (HKEX).
The notes carry a yearly interest rate of 6.500 percent, and mature in January 2031.
The issuance – via a wholly-owned subsidiary, SJM International Ltd – would “extend the maturity profile of the group’s indebtedness and enhance the group’s financial flexibility”, said SJM Holdings last week, when it announced the offering.
The casino firm has also confirmed the listing of the U.S.-dollar denominated notes on the HKEX.
After underwriting discounts, commissions and other expenses, the company said it intends to apply the net proceeds from the offering “for refinancing the group’s existing indebtedness, and general corporate purposes”.
On Monday, prior to any public statement on the pricing, Fitch Ratings Inc and Moody’s Ratings had respectively assigned a below-investment grade rating to the issuance of new U.S.-dollar senior, unsecured notes. The two rating agencies had each highlighted deleveraging challenges facing the casino operator. Moody’s said an upgrade of SJM Holdings’ ratings was “unlikely at present”.
On Wednesday, SJM Holdings said it had been able to purchase for cash 34.0 percent in principal amount of its outstanding 4.500-percent U.S.-dollar senior notes due on January 27 this year.
It stated US$170.115-million in principal amount – of the US$500-million value outstanding – had been purchased via a unit, which will leave a new balance of US$329.885 million outstanding.
