GGRAsia – Sands China redeems US$1.80-bln notes originally due 2023

Sands China redeems US$1.80-bln notes originally due 2023

Sep 29, 2021 Newsdesk Latest News, Macau, Top of the deck

Macau casino operator Sands China Ltd redeemed in full on September 24, its US$1.80-billion 4.600-percent senior notes due in 2023, according to a filing to the Hong Kong Stock Exchange on Tuesday.

The company said it had already applied to the bourse to withdraw the listing of the 2023 notes. “Such withdrawal … is expected to become effective upon the close of business on 6 October,” said Sands China.

The operator had previously stated it intended to redeem those notes and any accrued interest and the associated make-whole premium, by using cash on hand and the net proceeds of approximately US$1.93 billion from a recent lower-interest offering to investors.

Sands China completed on September 23, a previously-announced private offering, involving three series of senior unsecured notes in an aggregate principal amount of US$1.95 billion.

Regarding the new notes, the company had previously said the first tranche, amounting to US$700 million, would carry a yearly interest rate of 2.300 percent, and would have a maturity date of March, 2027. The second tranche is for US$650 million, bearing 2.850-percent interest annually, and matures in March, 2029. The third tranche of US$600 million, carries 3.250-percent annual interest, and matures in August, 2031.

The operation was originally announced on September 10 and described by Sands China as a move to “further strengthen the liquidity position of the group”.

That was prior to a Macau government announcement on September 14 about proposed changes to that city’s legal framework for the casino industry, including that the Macau government would need to approve Macau operators’ dividends, and that the government would use a delegate system to supervise each operator.

That news had an impact on the stock price of all Macau gaming operators. Sands China’s shares led a slump the day after the announcement, among gambling companies listed in Hong Kong. They fell 32.5 percent to HKD16.84 (US$2.20) at the end of trading on September 15. The company’s share price stood at HKD15.40 as of the close of Tuesday’s trading session in Hong Kong.