Las Vegas Sands said its majority-owned Macau subsidiary, Sands China, has priced $1 billion of senior unsecured notes in two tranches. The financing is intended mainly to refinance existing debt, with some proceeds also available for capital spending and other corporate needs.
The notes carry higher stated interest rates than Sands China’s $700 million notes due in 2027, which the company plans to repay. The new offering is expected to close on November 3, subject to customary conditions.
Key details
- Two maturities: Sands China priced $700 million of notes bearing 6.400% interest and due in 2032, plus $300 million bearing 6.700% interest and due in 2033.
- Use of proceeds: The company expects about $989 million in net proceeds. Together with cash on hand, it plans to redeem in full its $700 million of 2.300% notes due in 2027, including accrued interest; repay the outstanding balance on its 2024 revolving credit facility; and fund general corporate purposes, including capital expenditures.
- Investor access: The notes are being offered to professional and institutional investors, rather than to the public.
- Potential Hong Kong listing: Sands China plans to seek a listing for the notes on the Hong Kong Stock Exchange and has received an eligibility letter. The listing is not yet complete.
What changes
The transaction shifts some of Sands China’s financing from debt due in 2027 and borrowings under its revolving facility into notes maturing in 2032 and 2033. The new notes’ coupons are substantially above the 2.300% rate on the 2027 notes, so replacing that debt will increase the interest rate on the refinanced principal. The company has not specified how much of the proceeds will go to the revolving facility, capital spending or other corporate purposes.