Las Vegas Sands Corp has completed its previously announced underwritten public offering of an aggregate principal amount of US$500 million of 5.300% Senior Notes due 2031 and another US$500 million of 5.650% Senior Notes due 2033, the company said in an overnight filing.
The proceeds will, it added, be used alongside cash on hand to redeem in full the outstanding US$1.0 billion aggregate principal amount of 3.500% Senior Notes due August 2026 plus interest, to pay transaction-related fees and expenses and for general corporate purposes.
LVS added that the newly issued notes are unsecured, senior obligations of the company and will rank equally with its other unsecured and unsubordinated obligations.
Fitch Ratings last week assigned a “BBB” rating to the LVS notes, a rating it said reflects “improved credit metrics, strong performance in Singapore and a continued but slightly weaker-than-expected rebound in the Macau market.”
It stated, “LVS benefits from its scale in Macau, competitive market positions in Macau and Singapore, and robust FCF (free cash flow) generation. This is offset by a relatively heavy capital program and potential weakness in the Chinese economy. A Stable Outlook reflects continued strength in Singapore and slow improvement in Macau as well as steady credit metrics.”
LVS operates Singapore’s Marina Bay Sands and holds a controlling stake in Macau concessionaire Sands China.
