Macau casino operator Sands China Ltd said in a Wednesday filing that on the same day it had entered into a new credit facility agreement amounting to HKD32.45 billion (US$4.18 billion).
Sands China, a unit of U.S.-based Las Vegas Sands Corp, runs five casino resorts in Macau, including the Parisian Macao (pictured) in Cotai.
The fresh agreement provides for a HKD19.50 billion unsecured revolving credit facility, from which Sands China “may draw revolving loans … from time to time until September 24, 2029”.
The funds can be used for “general corporate and working capital requirements of the company and its subsidiaries, subject to certain restrictions,” stated Sands China.
The final maturity date of all loans drawn under the new revolving facility is October 23, 2029, it added.
The new agreement with the lenders also makes available a HKD12.95-billion unsecured term loan facility.
Sands China said it may make a drawdown under the new term loan facility at any time until August 31, 2025, “for the purpose of repaying amounts outstanding under its unsecured senior notes due August 2025”.
The final maturity date of the loan drawn under the term loan facility “is the date falling on the fifth anniversary of the date on which such loan is drawn,” said the casino firm.
According to the company, the initial margin for loans drawn under the fresh revolving facility is 2.5 percent annually. The margin for the amount drawn under the new term loan facility is 1.65 percent per annum.
The firm also said it will have to pay a commitment fee of 0.60 percent yearly on the undrawn amounts under the fresh credit facility, as well as other customary fees.
Bank of China Ltd, Macau Branch is the agent for a syndicate of lenders, said the announcement to the Hong Kong Stock Exchange.
In connection with the latest refinancing exercise, Sands China said a 2018 credit facility was terminated on Wednesday (October 23).
The 2018 agreement provided a US$2-billion unsecured revolving credit facility to Sands China, which had subsequently been increased by approximately US$494 million.
Wednesday’s filing said that, as customary for unsecured financing, the new credit facility contains certain covenants, including limitations on indebtedness, sale and leaseback transactions and dividend restrictions. Sands China is also required to maintain a maximum leverage ratio and a minimum interest coverage ratio, according to the filing.
