Possible US$637mln loan via STDM to shore SJM: mgmt

Management at Macau casino operator SJM Holdings Ltd says the firm has the possibility of asking for a HK$5-billion (about US$637-million) loan from its largest shareholder STDM, if faced with liquidity problems. The information was provided in a call with investment analysts after SJM Holdings announced its first-quarter unaudited earnings to the Hong Kong Stock Exchange.

Brokerage Sanford C. Bernstein Ltd said in a Tuesday note that “the continued delays” faced by SJM Holdings regarding refinancing bank debt, “raise concerns”.

“Management has indicated that a standby loan facility of up to HK$5-billion may be forthcoming from controlling shareholder STDM, but no details were provided,” said Sanford Bernstein analysts Vitaly Umansky and Louis Li.

They added: “Management also confirmed that there is no [gaming regulator] or government approval in terms of the potential shareholder loan nor is any bank covenant limiting the ability to draw funds from STDM”.

Source: https://www.ggrasia.com/possible-us637mln-loan-via-stdm-to-shore-sjm-mgmt/