Sands China to receive US$1bn loan from Las Vegas Sands

The original debt facility was granted in November 2018.
The original debt facility was granted in November 2018.

Las Vegas Sands Corp. will provide Sands China with a subordinated unsecured term loan.

Macau.- Sands China Ltd has entered into a loan agreement with Las Vegas Sands Corp (LVS) for MOP8bn (US$1bn) repayable on July 11, 2028. LVS will provide the loan to support working capital and general corporate purposes among other things.

According to the agreement, in the first two years from July 11, 2022, Sands China will have the option to elect to pay cash interest at 5 per cent per year or payment-in-kind interest at 6 per cent per year by adding the interest to the then-outstanding principal. After that only cash interest at 5 per cent per year will be payable.

According to the statement issued by Sands China, the loan agreement “highlights both LVS and the company’s confidence in the long-term growth potential of Macau, and the availability of the loan further bolsters the company’s balance sheet position and liquidity.” 

Yesterday (July 11) JP Morgan Securities (Asia Pacific) Ltd warned that Macau’s gross gaming revenue (GGR) for at least the majority of the third quarter may have to be written off. Analysts noted that Sands China Ltd currently has a minimum nine-month liquidity runway through March 2023.

Macau casino venues have been ordered to close their doors until July 18 due to the increase in Covid-19 cases in Macau.

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