GGRAsia – Sands China draws US$201mln from revolving facility

Sands China draws US$201mln from revolving facility

Apr 06, 2022 Newsdesk Latest News, Macau, Top of the deck

Macau-based casino operator Sands China Ltd accessed on March 15 a total of US$201 million from an existing revolving credit facility, “for general corporate purposes”.

The company drew down US$19 million and HKD1.42 billion (approximately US$182 million) under an existing 2018 credit facility.

Sands China is a subsidiary of U.S.-based Las Vegas Sands Corp.

The announcement on the use of the credit facility was included in a filing by Sands China to the U.S. Securities and Exchange Commission, referring to a proposed refinancing exercise of existing notes.

Sands China said in the document it had a “strong balance sheet and sufficient liquidity in place”. That included remaining available borrowing capability under its 2018 revolver facility of US$1.54 billion.

“Based on the current forecasts, the group believes it is able to support continuing operations, complete the major construction projects that are underway and respond to the current Covid-19 pandemic challenges for at least 12 months”, i.e., until end-2022, said Sands China.

It added: “The group has taken various mitigating measures to manage through the current environment, including a cost and capital expenditure reduction programme to minimize cash outflow for non-essential items.”

Sands China said last week it would pay MOP47 million (about US$6 million) as a condition for its Macau casino licence to be extended for a further six months, to December 31, 2022. The company will also have to provide a bank guarantee to ensure it can meet its labour liabilities in case it is not able to secure a new concession after December-end.

Sands China Ltd reported a net loss of US$245 million in the fourth quarter of 2021, an improvement on the US$423 million reported in the previous quarter. The result compared with a loss of US$246 million a year earlier.