Sands China granted loan exemption

Operator granted relief over certain terms to its $US2billion revolving credit facility.

Macau.- Sands China has negotiated a number of key amendments to a US$2billion revolving credit facility.

The revised agreement is intended to avoid Sands China defaulting on the loan if certain conditions are not met during the Coronavirus crisis.

Sands China entered into the credit facility with a group of lenders, with the Bank of China as the agent, in November 2018. It expires in July 2023.

The company said the changes include lenders waiving requirements for the company to ensure that its consolidated leverage ratio does not exceed 4 to 1 on the last day of any financial quarter. 

The lenders also agreed to waive a clause stating that the consolidated interest coverage ratio at the end of the quarter is greater than 2.5 to 1. The waiver is in place through to the quarter ending July 2021. 

The amendments also include a waiver on any default that may arise as a result of a breach of the aforesaid debt and interest covenants.

The company was granted the flexibility ahead of the deadline to submit its financial reports for 2019 to April 2020 and for the 2020 year to April 2021.