Sands China prices US$1bln notes to refinance debt

Macau casino operator Sands China Ltd has priced US$1.0 billion in senior unsecured notes across two tranches, with the proceeds earmarked partly to refinance US$700 million in debt due in March 2027. The offering comprises US$700 million of notes carrying an annual interest rate of 6.4 percent and maturing on January 8, 2032, and US$300 million of notes with a 6.7-percent coupon, due on November 8, 2033. The terms were disclosed in a Wednesday filing to the Hong Kong Stock Exchange, following the company’s earlier announcement of the proposed offering. Sands China said it entered into a purchase agreement on Tuesday with Barclays Capital Inc, BofA Securities Inc, and Goldman Sachs & Co LLC, as representatives of the initial purchasers. The 2032 notes were priced at 99.851 percent of their principal amount, while the 2033 notes were priced at 99.954 percent. Interest on both tranches will be payable semi-annually, per the announcement. The company expects net proceeds of approximately US$989 million. These funds, together with cash on hand, will be used to redeem in full its outstanding US$700 million of 2.3-percent senior notes due on March 8, 2027, including accrued interest. The proceeds will also repay the outstanding balance under Sands China’s 2024 revolving credit facility and support general corporate activity, including capital expenditure. The filing did not specify how much would be allocated to each of those things. Sands China’s board said the issuance would “extend the company’s debt maturity profile and further strengthen” the group’s liquidity position. The transaction is expected to close on November 3, subject to customary closing conditions. Sands China has received an eligibility letter from the Hong Kong Stock Exchange for the proposed listing of the notes. Sands China is a subsidiary of U.S.-based Las Vegas Sands Corp. Its Macau portfolio 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.