SJM Holdings may close its HK$25 billion loan by early August, said Bernstein in a note.
The brokerage quoted media sources indicating that more than 20 banks have joined a credit facility totaling HK$25 billion (US$3.2 billion) to fund SJM’s Cotai development. There may be more banks joining before the closing date of early August, the brokerage added.
More banks may join before the closing date, which is expected to occur in early August.
The loan is expected to include a HK$10 billion 4-year revolver and HK$15 billion six-year term loan and offers an initial margin of LIBOR plus 175 bps.
It was reported in January this year that SJM Holdings was negotiating the loan with various lenders. At the time, the Macau branch of the Industrial and Commercial Bank of China (ICBC) had been approaching banks on behalf of the company.
Lisboa Palace’s construction began in February 2014, at an estimated cost of HK$30 billion. In May, the group’s chief executive officer Ambrose So Shu Fai said it was planning to apply for 400-500 gaming tables for its development, which is expected to open in 2017.