U.S.-listed casino operator Las Vegas Sands Corp says its subsidiary Marina Bay Sands Pte Ltd has entered into a SGD12.00-billion (US$8.96-billion) credit facility agreement. At least part of the funds is directly to finance the expansion of its Marina Bay Sands complex, one half of Singapore’s casino duopoly.
The 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 a filing on Monday by Las Vegas Sands.
DBS Bank Ltd played the role of agent for the finance parties, said Las Vegas Sands.
The group stated earlier this month the expansion project for its Marina Bay Sands casino complex was now expected to be completed only by June 2030, with an anticipated opening date in January 2031.
Just in January, the company had affirmed in a revised agreement with the Singapore authorities plans for project completion by July 2029.
The casino group had committed in 2019 to the city-state’s authorities to invest at least SGD4.5 billion on expansion of the property. Since then, the company received a number of deadline extensions regarding the start of the property’s expansion.
Las Vegas Sands stated in October last year that it planned to invest US$8.0 billion in developing the second phase of the Marina Bay Sands complex.
The new phase – dubbed “MBS IR2” (standing for ‘integrated resort’) – 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.
Las Vegas Sands said in its latest filing that the proceeds from the SGD3.75-billion term loan facility and the SGD750-million revolving facility could be used by Marina Bay Sands Pte Ltd “to refinance outstanding indebtedness…, pay certain fees, expenses and accrued interest, make dividend payments and for general corporate purposes”.
The proceeds from the SGD7.50-billion delayed-draw term loan facility, however, can only be used “to finance development and construction costs, expenses, fees and other payments related” to the Marina Bay Sands expansion project.
Borrowings under the facilities for outstanding loans will bear interest at Compounded Singapore Overnight Rate Average, “plus a variable margin, which is determined based on the borrower’s ratio of debt to consolidated adjusted earnings before interest, taxation, depreciation and amortisation”, said Las Vegas Sands.
