[Caihua News] Regal Hotel (00078.HK) and four Seas International (00120.HK) announced that under the original financing agreement signed by LongProfits (wholly-owned subsidiary of Regal), Cosmopolitan International Holdings Limited and Bizwise (wholly-owned subsidiary of Sihai) on August 4, 2016, LongProfits granted a total of HK $1.85 billion of original loan financing (i.e. term loan and revolving loan financing) to Bizwise.

On 21 September 2021 (after trading hours), LongProfits, Sihai and Bizwise entered into a supplementary agreement to amend certain terms of the original financing Agreement, under which the total amount of revised loan financing will be reduced to HK $857 million and the maturity date will be extended to 12 October 2024.

The original loan financing was used by Sihai Group to repay the outstanding consideration payable by Sihai Group to the Regal Group in respect of its acquisition of the Chengdu and Tianjin projects in 2013.

A large amount of proceeds from the pre-sale of residential units in the Chengdu project have been obtained. In addition substantial sales proceeds are expected when the remaining components of the two projects are sold. The revised loan financing enables Sihai Group to repay the revised loan financing in line with the latest presale progress and completion schedule of the Chengdu and Tianjin projects. The revolving loan facility under the revised loan facility (up to HK $500m) will be available to Bizwise on a revolving basis to give Sihai Group the flexibility to manage its medium-term surplus cash before the revised loan financing is finally repaid.