Sogo department stores operator faces refinancing risk, with $2bln shortfall: Bloomberg

Lifestyle International, the operator of the Sogo department stores in Hong Kong, is under pressure to refinance a loan due in less than a month, Bloomberg reported, citing people familiar with the matter.

The Hong Kong-based retail operator still needs to secure roughly HK$2 billion in commitments to reach its HK$6.75 billion outstanding goal, the report said.

The funding gap accounted for about a third of the total refinancing amount, which is collateralized by the Sogo department store in Causeway Bay, according to the report.

Last month, Lifestyle's chairman, tycoon Thomas Lau Luen-hung, noted that he plans to buy the full outstanding principal of a US$350 million (HK$2.74 billion) bond before it matures on June 18, aiming to ease the repayment pressure.

The shift has prompted once-wary banks to reconsider joining in the loan refinancing, the report said, adding that the operator is also approaching new lenders to participate in the deal.

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