Sands China plans notes offering to refinance US$700mln debt

Macau casino operator Sands China Ltd plans to issue U.S. dollar-denominated senior unsecured notes, with part of the proceeds earmarked to redeem US$700 million in debt due in 2027. The proposed offering was announced on Monday by the company’s parent, U.S.-based Las Vegas Sands Corp. The principal amounts, interest rates and other key terms will be determined at pricing. Sands China intends to use the net proceeds, together with cash on hand, to redeem in full its outstanding US$700-million, 2.300-percent senior notes due in 2027, including accrued interest. The funds will also be used to repay the outstanding balance on the company’s 2024 revolving credit facility and for general corporate purposes, including capital expenditure. The announcement did not specify the outstanding balance on that facility or the amount to be allocated to capital expenditure. Sands China proposes to list the new notes on the Hong Kong Stock Exchange and has received an eligibility letter from the bourse, per Monday’s announcement. No binding agreement on the proposed offering had been made as of Monday’s announcement, meaning the transaction “may or may not materialise”, according to the release. Sands China’s third-quarter adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) slipped 12.0 percent year-on-year, to US$529 million. That was on net revenues that rose 1.8 percent year-on-year, to US$1.94 billion. The group’s portfolio in Macau includes The Venetian Macao, The Londoner Macao, The Parisian Macao and the Plaza Macao in Cotai, as well as Sands Macao on the city’s peninsula.