• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

SJM US$2.4bln refinance ok by govt, pending banks: MS

May 30, 2022 Newsdesk Latest News, Macau, Top of the deck  


SJM US$2.4bln refinance ok by govt, pending banks: MS

Refinancing of HKD19-billion (US$2.4-billion) in syndicated loans for Macau casino operator SJM Holdings Ltd is “already approved by government but pending banks’ approval,” according to a Thursday memo from Morgan Stanley Asia Ltd.

The need for the assent of the Macau government for such an arrangement had previously been flagged by a number of investment analysts, citing guidance from the casino firm’s management.

Morgan Stanley gave the information on governmental approval as an update from its recent Morgan Stanley 2022 Virtual China Summit.

SJM Holdings’ refinancing would “provide HKD6 billion of additional liquidity; as it retires HKD13-billion of old loans,” said the note from Morgan Stanley analysts Praveen Choudhary and Gareth Leung.

The institution said the new maturity date on the facilities would be 2028, and the effective interest rate would be the Hong Kong Interbank Offered Rate (HIBOR) plus 1.5 percent to 2.25 percent, “similar to the existing” terms on the present facility.

Earlier this month, SJM Holdings had indicated to investment analysts it had the option to ask for an up to HKD5-billion loan from parent Sociedade de Turismo e Diversões de Macau SA, also known as STDM, if faced with liquidity problems.

Morgan Stanley said in its Thursday update, that daily operating expenses for SJM Holdings were running at HKD16 million.

“If we include 2022 interest expense of HKD700 million and maintenance capital expenditure of HKD500 million, the total daily cash burn reaches HKD22 million,” wrote the analysts.

They added – referring to the casino group’s new HKD39-billion Cotai resort, which opened in July last year – that “another HKD800-million to HKD900-million capital expenditure on Grand Lisboa Palace [pictured] is still due”.

SJM Holdings’ current cash balance – put at HKD1.75-billon at the end of the first quarter – could “support this” level of outgoings “for three months at zero revenue,” further noted Morgan Stanley, reiterating previous commentary by the investment community.

The institution further stated that SJM Holdings expected break even in terms of overall earnings before interest, taxation, depreciation and amortisation (EBITDA) when market casino gross gaming revenue reached 40 percent of 2019 – i.e., pre-pandemic – level.

EBITDA break even for Grand Lisboa Palace might “require Hong Kong-Macau-mainland reopening,” said Morgan Stanley, referring to an easing of travel restrictions between the three sides.

In a Thursday note, banking group JP Morgan had expressed some concern about the timing of SJM Holdings issuing HKD1.9-billion in convertible bonds, to acquire the premises of Oceanus, a venue with a casino that it runs but does not presently own, located near Macau’s Outer Harbour.


  • tweet
Related articles
  • Macau GGR in June hit by seasonal slowdown: JP Morgan
    Macau GGR in June hit by seasonal...

    Jun 05, 2023  

  • Macau catalysts distinct from other China sectors: MS
    Macau catalysts distinct from other...

    May 24, 2023  

More news
  • Gaming-linked crime in Macau up 24pct y-o-y in 1Q: govt
    Gaming-linked crime in Macau up 24pct...

    Jun 08, 2023  

  • SOFTSWISS chosen for Cobra Casino jackpot campaign
    SOFTSWISS chosen for Cobra Casino...

    Jun 08, 2023  


Latest News

Gaming-linked crime in Macau up 24pct y-o-y in 1Q: govt

Gaming-linked crime in Macau up 24pct y-o-y in 1Q: govt

Jun 08, 2023  

Macau recorded 158 “gaming-related” crimes in the first three months of 2023, up 24.4 percent on the 127 identified in the prior-year period, according to the latest statistics published on...
Read More
SOFTSWISS chosen for Cobra Casino jackpot campaign

SOFTSWISS chosen for Cobra Casino jackpot campaign

Jun 08, 2023  

G2E Asia 2023: Singapore

  • Konami taps market-tried slots to refresh Asia op offer
    Konami taps market-tried slots to refresh Asia op offer

    Jun 08, 2023  

    Gaming content and equipment maker Konami says it is...
  • L&W building game content across 3 pillars: Ken Jolly
    L&W building game content across 3 pillars: Ken Jolly

    Jun 07, 2023  

    Casino gaming content and hardware provider Light &...
  • ETGs rapid growth segment in Asia: Interblock Michael Hu
    ETGs rapid growth segment in Asia: Interblock Michael Hu

    Jun 06, 2023  

    Electronic table games (ETGs) supplier Interblock dd is...
  • GLI offering RNG test tools, cybersecurity demand growing
    GLI offering RNG test tools, cybersecurity demand growing

    Jun 05, 2023  

    Random number generator (RNG) testing tools are among the...
  • Alfastreet’s new Verso cabinet heading to Asian markets
    Alfastreet’s new Verso cabinet heading to Asian markets

    Jun 01, 2023  

    Alfastreet, a manufacturer of electronic gaming machines,...
  • Sega Sammy Creation growing land-based, eyes online
    Sega Sammy Creation growing land-based, eyes online

    Jun 01, 2023  

    Casino equipment maker Sega Sammy Creation Inc is tweaking...
  • iGaming growing in Asia, ops tackling challenges: Uplatform
    iGaming growing in Asia, ops tackling challenges: Uplatform

    Jun 01, 2023  

    The iGaming segment in Asia “has grown rapidly” since...
  • ‘See before you play’ slot marketing tool, say tech suppliers
    ‘See before you play’ slot marketing tool, say tech...

    May 31, 2023  

    Showing slot machine players – via animations on the...
  • Macau stocks tied to China outlook: Bloomberg analyst
    Macau stocks tied to China outlook: Bloomberg analyst

    May 31, 2023  

    Macau stocks in likelihood “have been punished too much...
  • Investors still eye possible fresh IR locations in Japan: scholar
    Investors still eye possible fresh IR locations in Japan:...

    May 31, 2023  

    There are foreign companies still interested in investing...
  • Thai casino law possible in 2024, IR in 2030: govt adviser
    Thai casino law possible in 2024, IR in 2030: govt adviser

    May 31, 2023  

    Thailand could pass the necessary enabling legislation for...
  • China still ‘critical’ to Asian markets: G2E Asia panel
    China still ‘critical’ to Asian markets: G2E Asia panel

    May 30, 2023  

    China will remain a key market for Asian gaming...
  • Much interest in state casinos sale, says Pagcor boss Tengco
    Much interest in state casinos sale, says Pagcor boss

    May 30, 2023  

    Alejandro Tengco (pictured in a file photo), chairman and...
  • Gaming industry in for a very exciting period: Bill Miller
    Gaming industry in for a very exciting period: Bill Miller

    May 30, 2023  

    There are “plenty of reasons” for the global gaming...
  • IGT flags route to high-performing games for Asia
    IGT flags route to high-performing games for Asia

    May 30, 2023  

    Gaming equipment provider International Game Technology Plc...
  • G2E Singapore trade show, conference begins today
    G2E Singapore trade show, conference begins today

    May 30, 2023  

    The Global Gaming Expo (G2E) Asia 2023 Special Edition:...
  • Novomatic’s Black Edition II cabinets at G2E in Singapore
    Novomatic’s Black Edition II cabinets at G2E in Singapore

    May 29, 2023  

    Austria-based gaming equipment maker and operator Novomatic...
  • Uplatform to show latest iGaming products at G2E Singapore
    Uplatform to show latest iGaming products at G2E Singapore

    May 25, 2023  

    Sports betting and online casino operating platform...
  • L&W ambition to be No1 in Asia well on its way: SVP gaming
    L&W ambition to be No1 in Asia well on its way: SVP...

    May 24, 2023  

    The business performance in Asia of gaming content and...
  • G2E Singapore expecting 6k visitors, 100+ exhibitors
    G2E Singapore expecting 6k visitors, 100+ exhibitors

    May 18, 2023  

    The organisers of Global Gaming Expo (G2E) Asia 2023...
  • ‘Dragon Unleashed’ slot link by L&W at G2E in Singapore
    ‘Dragon Unleashed’ slot link by L&W at G2E in...

    May 17, 2023  

    Gaming content and equipment supplier Light & Wonder...
  • Sega Sammy Creation new multi-ETG at G2E in Singapore
    Sega Sammy Creation new multi-ETG at G2E in Singapore

    May 16, 2023  

    Casino equipment maker Sega Sammy Creation Inc is to...
  • Aristocrat at G2E Asia in Singapore previews Year of Dragon
    Aristocrat at G2E Asia in Singapore previews Year of Dragon

    May 09, 2023  

    Casino slot machine and digital gaming content provider...
  • IGT ‘Prosperity’ link in Asia show debut G2E in Singapore
    IGT ‘Prosperity’ link in Asia show debut G2E in...

    May 05, 2023  

    The Global Gaming Expo (G2E) Asia event in Singapore is the...
  • Thai parliament adviser on casinos attending G2E Singapore
    Thai parliament adviser on casinos attending G2E Singapore

    May 04, 2023  

    An adviser to a Thailand parliamentary committee mulling...

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”I think the gaming sector has a huge potential in coming years. The situation around the pandemic drew a lot of attention from the casino operators to the ETG segment”

Michael Hu

President for the Asia-Pacific region at gaming supplier Interblock



Most Popular

  • Macau GGR in June hit by seasonal slowdown: JP MorganMacau GGR in June hit by seasonal slowdown: JP Morgan June 5, 2023
  • China Politburo meeting key for any policy shift: UBSChina Politburo meeting key for any policy shift: UBS June 7, 2023
  • Queen’s Wharf Brisbane opening delayed to April 2024Queen’s Wharf Brisbane opening delayed to April 2024 June 6, 2023

Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us