Las Vegas Sands Wants to Change Macau Casino Loan Terms
Las Vegas Sands officials confirmed the company is in talks with lenders to amend its credit terms concerning bank loans made against its Macau properties. The casino operator has over $3.4 billion in debt in relation to Macau.
"We are in discussions with lenders regarding possible transactions," said Ron Reese, a spokesman for Sands.
Reese would not comment on the nature of the discussions or the concessions being asked of lenders.Sands officials have stalled ongoing Macau gaming projects to avoid breaking loan covenants, and there is little doubt the company would like more leeway to continue advancing its planned expansions.
Sands has previously allowed that it may consider an initial public offering on its Macau possessions, which would necessitate approval by lenders. The company has also raised the prospect of other cash-generating moves, including taking on more debt or selling stakes in existing properties, either of which would have to be okayed by creditors.
According to Joseph Greff of JPMorgan, Sands creditors are likely to receive an upfront fee for amending covenants, plus an increase in interest paid as the loan continues.
Sands is preparing to open a new casino resort in Singapore, and still owns undeveloped land in Macau on the Cotai Strip on which it has planned retail and restaurant construction.
