Sands China to list US$1.95bn in senior notes

Sands China has announced it will issue new unsecured notes in three tranches 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 will list US$1.95bn in senior notes. It said the first tranche of new notes will have a total value 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, the interest rate is 2.85 per cent once a year, and it expires in March 2029. The third phase is US$600m, with an annual interest rate of 3.25 per cent, due in August 2031. 

In a filing with the Hong Kong Stock Exchange, 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 senior notes will have the same status as the company’s existing and future senior unsecured debts in terms of payment rights.

Sands China reported US$125m in net losses in August, and net revenues at US$148m. Adjusted negative property EBITDA was US$14m, compared to a positive EBITDA of US$44m in July.

Monthly gross gaming revenue for August was up 234 per cent year-on-year but down 82 per cent when compared to 2019 levels. Sands China said strict border restrictions implemented in Macau had deeply affected the results. 

Macau’s GGR declined by 47.7 per cent month-on-month in August, a month that was impacted by local cases of Covid-19 and hundreds of cancelled flights. At MOP$4.44bn (US$554.5m), it was the lowest monthly GGR figure since September 2020.

Sands China said: “The Covid-19 pandemic has materially adversely affected the number of visitors to our facilities and disrupted our operations, and we expect this adverse impact to continue until the Covid-19 pandemic is contained.”

As of August 31, Sands China’s total liquidity is US$2.56bn, including US$556m in cash and cash equivalents (excluding restricted cash and cash equivalents) and US$2bn available under the 2018 SCL Revolving Facility. 

Macau to revise 2021 GGR forecast

Macau’s gross gaming revenue (GGR) in August has negatively impacted the city’s forecast for the year. Lei Wai Nong, Macau’s secretary for economy and finance has now said that Macau is revising GGR forecasts for the year for the city’s revised budget, which will be submitted to the Legislative Assembly.

However, he said authorities were confident the city would see a rebound in the following months, especially during October’s Golden Week. The Macau Government Tourism Office (MGTO) has predicted the city could receive 30,000 visitors per day during the October Golden Week.