Las Vegas Sands Corp, the parent company of Singapore’s Marina Bay Sands and controlling shareholder in Macau concessionaire Sands China, has launched a series of unsecured notes offerings, with proceeds to refinance its US$1.75 billion 3.2% unsecured notes due June 2024.
The notes are being offered across three tranches totaling US$1.75 billion, including US$750 million 5.900% Senior Notes due 2027, US$500 million 6.000% Senior Notes due 2029 and US$500 million 6.200% Senior Notes due 2034.
In a research note issued shortly before LVS confirmed pricing, CBRE Credit Research analyst Colin Mansfield said he expected the transaction to be leverage neutral or marginally de-leveraging for LVS, adding that the company is in a good position to tap the debt capital markets to address its 2024 maturity given the ongoing recovery in Macau, strength in Singapore, and subsequent de-leveraging due to EBITDA growth.
“This issuance was well-anticipated and with the 2024 maturity resolved, LVS’s focus in 2H24 can begin to turn to the US$1.8 billion maturing at Sands China Ltd in 2025 (as well as another US$500 million at LVS level),” he said.
“LVS should be a regular unsecured issuer over the next few years and the credit profile provides exposure to two strong, global gaming jurisdictions, a prudently managed balance sheet and shareholder return strategy, and modest leverage.”
Mansfield noted that LVS had improved its gross leverage from 3.6x to 3.3x in 1Q24, primarily on EBITDA growth, adding he expects leverage to continue to decline over the coming quarters.
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