Las Vegas Sands Extends Suspension Of The Dividend Program

Las Vegas Sands Corp (LVS) has agreed to extend their suspension of the dividend program, until the end of 2022, on the condition that it stays at less than US$1.0 billion in liquidity.

Consequently, Canada’s Bank of Nova Scotia and other partners have agreed to relax a lending covenant banning the group from selling its venues in Las Vegas and the US.

Furthermore, LVS says it has negotiated a second waiver amendment to the conditions of US$ 1.5Billion senior unsecured revolving credit provided by the bank syndicate.

Las Vegas Sands Corp, in early March, had agreed to sell its Las Vegas venues and operations for the US $6.25 Billion. The group intended to focus its investments in Asia and new markets that showed high growth opportunities.

However, during the same period, Las Vegas Sands succumbed to US$757 million worth of losses, larger than the 139 million they incurred in the same period in 2020.

Due to the impact of Covid-19, in April 2020, the casino said it would suspend the company’s dividend program. They stated that the casino would continue with its capital expenditure program in both Macau and Singapore during the time.

The bank syndicates and LVS agreed that lenders extend the period by one year to December 31, 2022. Under the new terms, LVS will need to maintain minimum liquidity of US$ 700 Million on the last day of each month, which is twice the amount of the previous arrangement.

The company has plans to spend hundreds of millions of US dollars on infrastructure in the Macau Casino market as it completes the revamp on Cotai casino resorts as the Londoner Macao.

The company also says that it is entering the final phases before launching the Londoner Court hotel at Londoner Macao.