U.S.-listed casino operator Las Vegas Sands Corp (LVS) says its subsidiary Marina Bay Sands Pte Ltd has cleared “all outstanding amounts” under a previous financing facility. The subsidiary runs the Marina Bay Sands complex (pictured), one half of Singapore’s casino duopoly.
“All outstanding amounts under the finance documents have been discharged in full, and no commitment of any lender under the existing facility agreement is in force,” stated the parent firm in a Monday announcement.
The update comes after the group announced that Marina Bay Sands Pte Ltd had clinched a new SGD12.00-billion (US$8.96-billion) credit facility agreement.
The new credit facility agreement provides for a SGD3.75-billion term loan, plus a SGD750-million revolving credit facility – part of which may be designated as an ‘ancillary facility’ – and a SGD7.50-billion delayed-draw term loan facility, according to corporate documents.
In Monday’s filing, Las Vegas Sands said that “in connection with the consummation” of the new credit facility agreement, the subsidiary “prepaid all outstanding Facility A Loans and Facility D Loans; repaid all ancillary outstandings; reduced the available facility for each facility to zero; and cancelled the whole of the ancillary commitment of each ancillary lender” under the previous facility agreement.
The previous facility was originally dated June 25, 2012. The transactions were completed on Friday, February 28, said the update.
The Las Vegas Sands group stated in early February that the expansion project for Marina Bay Sands was now expected to be completed only by June 2030, with an anticipated opening date in January 2031.
Las Vegas Sands said in October last year that it planned to invest US$8.0 billion in developing the second phase of the Marina Bay Sands complex.
In January, Las Vegas Sands announced an agreement between Marina Bay Sands Pte Ltd and the Singapore Tourism Board, allowing the firm to increase the overall gaming area allocation for the expansion project, among other amendments. In return, Las Vegas Sands agreed to pay US$1 billion to the Singaporean authorities.
The new phase will feature a fourth tower with over 570 rooms, additional casino space, a 15,000-seat arena, a sky roof, retail outlets, restaurants, and space for meetings and exhibitions.
When it announced the new credit facility last week, Las Vegas Sands the proceeds from the SGD7.50-billion delayed-draw term loan facility can only be used “to finance development and construction costs, expenses, fees and other payments related” to the Marina Bay Sands expansion project.
