Sands China Ltd, the Macau-gaming operations unit of Las Vegas Sands Corp, says it plans to exercise its option to redeem on June 11 the balance of its US$1.80-billion in senior unsecured notes due on August 8.
The Macau unit stated in a Friday filing to the Hong Kong Stock Exchange that the redemption was conditional on the “closing of a financing transaction sufficient to provide funds” to cover it.
At the close of business on May 22, the aggregate outstanding principal amount of the 2025 notes was US$1.63 billion, stated Sands China.
The casino firm said it intends to draw down its 2024 term loan facility “and/or use its internal cash resources” to finance the redemption of the 2025 notes.
The 2025 notes were made up of 5.125-percent registered senior notes due August 8, 2025 and issued on January 29, 2019.
On Thursday last week, after its annual general meeting, Sands China’s shareholders approved a final dividend of HKD0.25 (US$0.0319) per share for the year ended December 31, 2024.
The meeting also ratified a general mandate for the directors to repurchase shares of the company not exceeding 10 percent of the total number of issued shares of the firm as of May 22.
On April 30, the parent, Las Vegas Sands, had said it would issue US$1.50-billion in senior unsecured notes as part of a refinancing exercise.
Las Vegas Sands stated it intended to use the net proceeds from that 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.
