Macau gaming concessionaire SJM Holdings says it expects to raise around US$991 million after confirming plans to issue US$1 billion of senior notes.
Three days after SJM first proposed an offer, the company announced pricing of the notes which will include US$500 million 4.50% senior notes due 2026 and US$500 million 4.85% senior notes due 2028.
Both will be issued next Wednesday 27 January 2021.
The offer is being conducted independently of majority shareholder Sociedade de Turismo e Diversões de Macau, SA (STDM), which owns 54% of SJM, however the company revealed that STDM and affiliates had agreed to subscribe to US$79.5 million of the notes.
SJM said that around 90% of the net proceeds from the offering would be used for refinancing the Syndicated Credit Facilities and the remaining balance for general corporate purposes.
“The Board believes that there would be significant benefit to the Company in effecting the proposed issuance and using the net proceeds for the intended purpose as it would extend the maturity profile of the Group’s indebtedness and reduce the Group’s secured indebtedness,” it stated.
SJM is expected to open its HK$39 billion (US$5 billion) Cotai integrated resort Grand Lisboa Palace inside the current quarter.