Macau casino operator SJM Holdings Ltd. (0880.HK) is selling up to HK$2.0 billion worth of six-year convertible bonds, according to a term sheet seen by Dow Jones Newswires Thursday.

The bonds can be converted into SJM shares at HK$5.13-HK$5.35, representing 15%-20% discount to its closing price of HK$4.46 Thursday.

The company plans to use the proceeds for capital expenditures on its developments in Macau and for general working capital.

Deutsche Bank (DB) is the bookrunner of the issue.

-By Jackie Cheung, Dow Jones Newswires; 852-2802-7002; jackie.cheung@dowjones.com