Macau gaming operator SJM Holdings indicates it has completed a cash tender offer to repurchase $170.1 million of its outstanding 4.5 percent senior notes due 2026, reducing the principal amount ahead of maturity.
According to a Hong Kong Exchange filing released on Tuesday, the offer expired at 4pm London time on January 12th, with a total of $170 million in aggregate principal amount of the 2026 notes validly tendered. The issuer said it will accept all notes tendered under the offer.
The notes were issued by Champion Path Holdings and are unconditionally and irrevocably guaranteed by SJM Holdings. Following the repurchase and cancellation, the outstanding principal amount of the 2026 notes will be reduced to $329.9 million. Payment for the accepted notes, together with accrued interest of $21.125 per $1,000 principal amount, is expected to be made on or about January 16th, the company said.
According to the previous disclosure, the tender offer would be financed with proceeds from a concurrent new notes issuance and internal funding, as part of a broader debt refinancing plan.
The transaction comes as credit agencies continue to monitor SJM’s balance-sheet recovery. Fitch Ratings recently flagged ‘heightened uncertainty around SJM’s deleveraging trajectory’ after assigning a ‘BB-’ rating to SJM Holdings Limited’s proposed senior unsecured notes. Fitch cited weak performance at the Grand Lisboa Palace resort and continued market share dilution following the closure and restructuring of satellite casinos as key pressure points.
Fitch said its ‘Negative’ outlook reflects concerns over the pace and reliability of SJM’s balance-sheet improvement, although leverage metrics are expected to recover to within the ‘BB-’ threshold by 2027.
