Macau casino operator SJM Holdings Ltd announced on Monday it would purchase for cash “any and all” of its outstanding 4.500-percent senior notes due on January 27 this year. The aggregate principal amount of the outstanding notes is US$500 million.
The initiative is “part of the refinancing of the company’s and its subsidiaries’ existing indebtedness”, said SJM Holdings in a Hong Kong Stock Exchange filing.
SJM Holdings said the tabled purchase price was US$1,000 for each US$1,000 in principal amount of the U.S. dollar-denominated 2026 notes. They were issued in January 2021.
The expected settlement date for the proposed purchase is “on or about January 16”. Sole dealer manager is Deutsche Bank AG, Singapore Branch, and Kroll Issuer Services Ltd is information and tender agent.
The exercise would be covered by “internal funding”, and proposed issuance of new, U.S.-dollar -denominated senior notes, according to the filing.
SJM Holdings’ Macau flagship properties are Grand Lisboa (pictured) on Macau peninsula, and Grand Lisboa Palace in the city’s Cotai district.
The group carried HKD27.31 billion (US$3.51-billion) in debt as at September 30, and had just under HKD3.45 billion of cash, bank balances, short-term bank deposits and pledged bank deposits, it said in its third-quarter financial highlights issued in November.
The interest rate and other pricing information on the new notes would come “on or about January 8”. They would be for non-U.S. investors.
SJM Holdings stated: “If the [U.S.-dollar] notes are issued, the company intends to use the net proceeds from the proposed offering for refinancing the group’s existing indebtedness and general corporate purposes,” stated SJM Holdings in a separate Monday filing.
The company said its board believed there would be “significant benefit to the company” from the issuance of new U.S.-dollar notes.
The move would “extend the maturity profile of the group’s indebtedness, and enhance the group’s financial flexibility”.
For the new notes, Deutsche Bank AG, Singapore Branch, BNP PARIBAS, China International Capital Corporation Hong Kong Securities Ltd, China CITIC Bank International Ltd and UBS AG Hong Kong Branch have been appointed as the joint global coordinators and joint book runners.
The joint lead managers are: Banco Comercial Portugues SA Macau Branch; Banco Nacional Ultramarino SA; Bank of China Ltd Macau Branch; Bank of Communications Co Ltd Macau Branch; CBRE Capital Advisors Inc; China Construction Bank Corp Macau Branch; CLSA Ltd; Industrial and Commercial Bank of China (Macau) Ltd and Tai Fung Bank Ltd.
