Las Vegas Sands Expects Profit From $1.5 Billion Unregistered Senior Notes

Published: 05/06/2020 | Last Updated: 08/06/2020

Las Vegas Sands Expects Profit $1.5 Billion Unregistered Senior Notes

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Sands China Ltd., a majority-owned subsidiary of Las Vegas Sands Corp, expects to gain 1.48 billion profit from $800 million of 3.800 % senior notes due on 2026 and $700 million of 4.375% senior notes due 2030.

In a statement to the Hong Kong Stock Exchange, Sands China priced the senior notes intended for liquidity and general corporate purposes.

According to the Securities Act of 1933, the notes can only be offered and sold to professional investors and qualified investors as determined based on the guidelines of the “Hong Kong Listing Rules,” and the Securities and Futures Ordinance.

Guidelines restrict private individuals from purchasing the notes, including any person connected to the company. The company is not allowed to offer or sell the notes to anyone not qualified under the securities laws.

Sands China listed the notes on the Hong Kong Stock Exchange

The Las Vegas Sands subsidiary plans to enlist the unregistered senior notes to the Hong Kong Stock Exchange. The company has already received approval from the Hong Kong Stock Exchange. A senior note is a less risky bond with lower interest rates that precedes other debts when a company declares bankruptcy.

According to the company’s statement, the notes due in 2026 are offered at 99.901 percent of its principal amount. The company offered 99.580 percent of the principal to the note that ends 2030. The senior notes issue date is June 4. The 2026 notes’ interest rate is at 3.800 percent annually, while the 2030 notes are at 4.375 percent annually.

The notes will mature January 8, 2026, and June 18, 2030, and the due dates of the first payments are on January 8, 2021, and December 18, 2020. The announcement revealed that the company is in agreement with initial purchasers, including Barclays Capital, BofA Securities, and Goldman Sachs & Co.

The offering is due to the uncertainty of Coronavirus duration and intensity

The announcement revealed that the offering was made because of the intensity and duration of the coronavirus pandemic. Sands announced on Friday that its total liquidity reached $2.42 billion. The liquidity included total cash and cash equivalents of $801 million and available capacity of $1.61 billion.

The company said that they believe they can back its continuous operations. The company also revealed that they are constructing major projects and that they are standing strong against the challenges brought by the pandemic.

The Gaming Inspection and Coordination Bureau said that Las Vegas Sands owns five out of 41 casinos in Macau. Las Vegas Sands casinos resumed operations of its casinos in Nevada on June 4.

The reopening attracted gamblers from neighboring states. People lined up outside the casino entrance, patiently waiting their turn to enter the gambling facility. The casino imposed safety and health guidelines inside the casino.

Guests and employees submitted themselves to temperature check before entry to the casinos. The management assured that social distancing protocols were exorcized in the casino to protect the lives of everyone.