Las Vegas Sands (LVS), the giant casino operator founded and controlled by billionaire tycoon Sheldon Adelson, relies a little more. It has filed a notice with the Securities and Exchange Commission (SEC) that it has secured a new multi-billion dollar loan to assist in its expansion efforts in Singapore. The loan agreement follows the announcement earlier this year that it wanted foreign money to finance the company’s expanded Marina Bay Sands (MBS) operations in the country.
Las Vegas Sands collects billions in loans for Singapore’s expansionAccording to the deposit, LVS now has a new deferred term term loan with a total principal amount of $2.71 billion, shy of the $6 billion it requested in June last. The money will be used to “finance the project costs associated with the marina Bay Sands expansion project” “in accordance with [its] development agreement” with the Singapore Tourism Board (Singapore Tourism Office).
This agreement was reached between the STB and the LVS in April and allowed MBS to grow in scale and scale. The agreement also included approval for Genting Singapore Ltd. to expand its World Sentosa Resorts and both operations were granted permission to maintain their duopoly on the Singapore gaming scene provided that certain investments majors have been made.
Now that the money is secured, LVS will be able to move forward with its expansion plan, which chief operating officer and company president Robert Goldstein expects to be completed by January 1, 2024. Goldstein made the statement during a earnings call last July, during which he explained that LSV is willing to spend $3.3 billion to grow the MBS property.
According to the NASDAQ filing, the loan facility was made possible through an existing credit agreement with DBS Bank Ltd. This agreement was amended and reiterated to include the new facility and was reportedly signed on August 30, and also includes provisions to expand a revolving line of credit that was made available through a separate loan. The amount of this facility increased from $180.74 million to $542.22 million and the termination date was extended to February 27, 2026.
LVS has managed to negotiate a very friendly agreement, with an annual fixed interest rate of 1.65% until the end of September next year. After that, the rate will become variable and can fluctuate anywhere from 1.15% to 1.85% depending on the consolidated leverage ratio.
The deposit also states: “Under the third re-declared facility agreement, the borrower must comply with a maximum consolidated leverage ratio of 4.50 to 1.00 as of the last day of each fiscal quarter, from the closing date to twelve months after the date a temporary occupancy permit is issued as part of the MBS expansion project. Subsequently, the borrower must comply with a maximum consolidated leverage ratio of 4.00 to 1.00 as of the last day of each fiscal quarter.