Se dice que Las Vegas Sands (NYSE: LVS) está buscando un préstamo en tres tramos de casi $9 mil millones para la expansión de su complejo turístico Marina Bay Sands en Singapur.
Reports regarding the $8.9 billion loan, anticipated to be the largest corporate borrowing in Singapore's history, appeared earlier this month, with further information becoming available this week. Anonymous sources familiar with the situation informed Bloomberg News that the financing may be divided into three segments: $5.6 billion in delayed-draw term financing, $2.8 billion in term loans, and a $560 million credit facility.
DBS Group Holdings Ltd., Malayan Banking Bhd., Oversea-Chinese Banking Corp., and United Overseas Bank Ltd. are the financial institutions promoting the loan, and this consortium is reportedly looking for help from additional banks.
Sources informed Bloomberg that the Marina Bay Sands credit is being promoted to a wide range of institutional investors and is anticipated to have an annual interest rate of 120 basis points.
Speculation about Sands pursuing $9 billion in credit emerged almost a year after earlier speculation that LVS was seeking $7.5 billion to improve and expand the integrated resort in Singapore.
If the operator’s loans for Marina Bay Sands total approximately $9 billion, it would significantly exceed the initial estimate of $3.4 billion stated by LVS in 2019. That may indicate a sign of restricted labor availability and high material expenses.
Las Vegas Sands, the parent of the holding company overseeing Marina Bay Sands, boasts investment-grade credit ratings from the three primary ratings agencies, suggesting the firm should find it easy to access capital markets and be able to borrow at comparatively favorable interest rates. This investment-grade rating is significant for promoting the Singapore loan to cautious investors looking for income while avoiding junk-rated debt.
In the context of the gaming industry, Sands boasts a robust financial position with $4.7 billion in cash available and $4.4 billion accessible through an unused revolving credit line. The firm is anticipated to allocate $1.5 billion this year, primarily towards Londoner Macau and Marina Bay Sands in Singapore. Spending for 2025 is anticipated to decrease to $1.15 billion.
The approximately $9 billion that Sands aims to borrow for the Singapore casino hotel will fund the building of a fourth tower at the landmark site, and this investment could yield long-term benefits.
Marina Bay Sands ranks among the world's most valuable gaming brands, and its gaming venue is one of the most lucrative of its category. At present, it is the sole asset outside of Macau within the LVS portfolio.
Strengthening Marina Bay Sands is crucial from a competitive perspective because, by the decade's end, regional competition is expected to heighten with the launch of integrated resorts in Japan and Thailand.
