Macau’s integrated resort development company, Sands China, has announced that it has signed a loan agreement with its parent company, Las Vegas Sands (LVS), following the recent announcement of a new lockdown in the SAR.
In a press release for investors, Sands China released information detailing the terms of the subordinated unsecured term loan. The amount is $ 1 billion (£ 845 million / € 998 million) and will be lent on July 11, 2022 and repaid on July 11, 2028.
In the first two years of the contract, Sands China can choose to pay cash interest at 5% per year or 6% per year by adding the amount of in-kind interest to the current principal. loan. For the last two years, only cash interest will be paid.
In February, S & P downgraded LVS bonds to BB + below investment qualification. That is, it can be difficult to find credit from an alternative source for a subsidiary. Currently, LVS owns 70% of Sands China’s outstanding equity capital.
LVS said the loan was provided to support “group working capital and general corporate objectives.”
The difficult business environment for the Macau sector was not mentioned. The SAR government yesterday announced the closure of the city’s casino in the face of an increase in the number of cases of Covid-19.
