Casino group Las Vegas Sands Corp, parent of Macau casino operator Sands China Ltd, is to issue US$1.50 billion in senior unsecured notes as part of a refinancing exercise, according to an updated prospectus published on Wednesday.
The notes are to be issued in two tranches: US$1.00 billion in 5.625-percent senior notes due in June 2028, at a public offering price equal to 99.925 percent of the principal amount; and US$500 million in 6.000-percent notes due in June 2030, at a public offering price equal to 99.889 percent of the principal amount.
The casino firm said it had signed an agreement with Barclays Capital Inc, BofA Securities Inc, Goldman Sachs & Co LLC, and Morgan Stanley & Co LLC, as representatives of a number of underwriters.
“The offering is expected to close on or about May 6, 2025, subject to satisfaction of customary closing conditions,” stated the company.
Las Vegas Sands said it intends to use the net proceeds from the offering, together with cash on hand, to redeem in full the outstanding US$500- million, 2.900-percent senior notes due in June 2025 and any accrued interest, and to pay transaction-related fees and expenses.
The net proceeds will also be used for general corporate purposes, “which may include repurchases of Las Vegas Sands’ common stock,” stated the firm in the prospectus.
Las Vegas Sands is the parent of Macau gaming operator Sands China Ltd, and it also runs the Marina Bay Sands casino resort in Singapore.
Fitch Ratings Inc has assigned a ‘BBB-‘ rating to Las Vegas Sands’ new senior unsecured notes offering, with a ‘stable’ outlook.
The rating agency said in a Tuesday report that it expects the casino group’s leverage “to remain appropriate for the ‘BBB-‘ rating despite the slight increase”.
“The company continues to demonstrate solid access to capital, abundant liquidity, and conservative balance sheet management,” it added.
According to the institution, Las Vegas Sands’ earnings before interest, taxation, depreciation, and amortisation (EBITDA) leverage stood at 3.4 times in 2024, and its net EBITDA leverage was 2.5 times.
“Achieving sustainable leverage below 3.5 times could lead to an upgrade in the next 12 to 24 months,” noted Fitch.
“Stronger performance in Macau and continued stability in Singapore should help maintain these credit metrics,” it added.
Fitch observed that Las Vegas Sands’ management “targets a gross debt ratio of 2.0 times to 3.0 times, before development project impacts”.
“While the company has a share repurchase program and recently announced a dividend increase, free cash flow should be sufficient,” it stated.
‘Favourable’ leverage profile
CBRE Equity Research said in a Tuesday memo that it had a “favourable” view on Las Vegas Sands’ new note issuance, “given the entity’s full ownership of Marina Bay Sands and strong liquidity,” including a US$1.5-billion revolver capacity and US$1.7-billion cash as of first-quarter 2025.
Marina Bay Sands Pte Ltd, the direct promoter of the Marina Bay Sands complex, secured in February a new SGD12.00-billion (US$9.19-billion currently) credit facility agreement. At least part of the funds is directly to finance the expansion of the Singapore complex.
“We believe the company was in a good position to tap the capital markets” to refinance the notes due in June this year, “given the favourable leverage profile … and well-timed extraction of US$1 billion from Sands China, vis-a-vis repayment of the parent subordinated loan,” said CBRE.
In March, Sands China said it had repaid “in full” – more than three years early – a US$1-billion subordinated unsecured term loan from Las Vegas Sands. The Macau unit announced in October last year a new credit facility agreement amounting to HKD32.45 billion (US$4.18 billion).
According to CBRE, Las Vegas Sands had US$3.2 billion of total liquidity as of first-quarter 2025, between revolver capacity and cash, relative to US$4.0 billion of unsecured debt.
The liquidity outlook for Las Vegas Sands “has also improved with the company’s decision to exit the bidding process for a downstate New York full-scale casino licence,” noted CBRE.
“With the recent exit from the bidding process, we anticipate share repurchases will be ramped up, but the credit has the wherewithal to do this, and it is a more flexible form of shareholder returns than recurring dividends,” it added.
Las Vegas Sands announced last week that it had decided not to take part in a bidding process for up to three commercial casino licences in downstate New York, in the United States.
“We believe the highest and best use of our capital in the near term is to purchase Las Vegas Sands’ and Sands China’s shares,” stated Patrick Dumont, the group’s president and chief operating officer. “Accordingly, Las Vegas Sands has decided not to bid for a casino license in New York,” he added.
(Updated at 4pm, May 1)
