Sands China completes issue of US$1.95bn in senior notes

Sands China issued new unsecured notes in three tranches.
Sands China issued new unsecured notes in three tranches.

Sands China has announced it has finished the issuance of new unsecured notes to redeem in full the outstanding principal amount of its US$1.80bn 4.6 per cent senior notes due 2023.

Macau.- Casino operator Sands China has announced it has finally listed US$1.95bn in senior notes. The operation was announced on September 10, when the company said it had signed purchase agreements with Barclays Capital, Bank of America Securities and Goldman Sachs as representatives of the initial purchasers of the notes. 

The procedure was divided into three tranches. The first consists of US$700m, an annual interest rate of 2.3 per cent, and a maturity date of March 2027. The second phase totals US$650m, with an interest rate of 2.85 per cent and expiry in March 2029. The third, US$600m, has an annual interest rate of 3.25 per cent, due in August 2031. 

The company said it would use the money to redeem in full the outstanding principal amount of its US$1.80bn 4.6 per cent senior notes due 2023.

Sands China gaming stocks plummet after proposed new gaming laws

Reports of a possible change in current gaming laws caused Macau casino operators stocks to fall sharply. Sands China saw a 32.51 per cent drop in its shares.

According to analysts, the drop could also be related to fears surrounding a possible new Covid-19 surge as cases have risen in China in recent days. Brokerage JP Morgan Securities has downgraded Macau gaming stocks from “overweight” to “neutral/underweight”.

A group of experts and analysts consulted by Macau News Agency believe the market reaction to possible changes to Macau’s gaming laws was excessive.

Carlos Siu Lam, Macao Polytechnic Institute gaming industry researcher, said that the level of investor pessimism was excessive, adding that the situation has improved when compared to the last year when the Covid-19 pandemic started.

He said the gaming law proposals were not surprising, saying: “the money laundering regulations, the new structure of Gaming Inspection and Coordination Bureau (DICJ) in mid-June. With the appointment of new chiefs, DICJ is better prepared for the future.”

Alidad Tash, managing director at 2nt8 Limited, also said the proposed changes were no surprise. However, he admitted the lack of clarity around the government’s intentions had brought uncertainty.

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