Gaming | SJM proposes to raise notes in HKD and MOP

SJM Holdings Ltd (SJM) would raise HKD1.25 billion notes and MOP300 million notes, according to a statement delivered by the group to the Hong Kong Stock Exchange on May 5.
The group said it and the issuer — Champion Moments Limited, a wholly-owned subsidiary of the SJM — would seek a listing of the Notes, both HKD and MOP, on Chongwa (Macao) Financial Asset Exchange Co., Ltd, a local financial entity offering bond services.
The proposed notes of HKD1.25 billion in 3.9% senior notes are to be issued on May 12 and due on the same day in 2026. The issue and maturity date will be the same for MOP300 million Notes.
SJM estimated that the net proceeds from the offering of the notes — after deducting discounts of the Initial Purchasers and estimated offering expenses payable by SJM — will stand at around HKD1.24 billion and MOP298 million.
Around 90% of the net proceeds will be used by SJM for “refinancing the Syndicated Credit Facilities and the balance for general corporate purposes,” according to the statement.
The said “Initial Purchasers” in the undertaking predominantly include banking groups based in Macau, such as: Industrial and Commercial Bank of China (Macau) Limited; Bank of China Limited (Macau Branch); Bank of Communications Co Ltd (Macau Branch); and China Construction Bank Corp (Macau Branch).
During the previous earning calls on May 4, the representative of the SJM said that the upcoming Grand Lisboa Palace, SJM’s first investment project on Cotai, is slated to open partially by the end of the second quarter of 2021.
The premium segments, also including VIP, are expected to be the new resort’s target consumers.
Upon its initial opening, the new property will offer approximately 300 gaming tables, 1,034 slot machines, 300 hotel rooms, food and beverage (F&B) and retail outlets.
The property will feature two luxury boutique hotels – Palazzo Versace Macau and Karl Lagerfeld Hotel.