Sands China Ltd, an integrated resort developer and operator in Macau, is set to issue new unsecured notes that make up a principal sum of US$1.95 Billion after experiencing a doubled loss between July and August.
In a Friday filing to Hong Kong Stock exchange, the company states that it has a purchase agreement of the new notes with Barclays Capital Inc., Bank of America Securities Inc., and Gold Man Sachs & Co LLC.
The new unsecured notes will rank equally in right of payment, with all of the company’s existing and future indebtedness.
Sands China’s first share of new notes amounts to US$ 700 Million with a yearly interest rate of 2.3% and a maturity date of March 2027. The Second share goes for US$ 650 Million with an annual interest rate of 2.85% and a maturity date of March 2019.
The last share amounts to US$ 600 million with an interest rate of 3.25% and a maturity date of August 2031.
Sands China reportedly plans on using the proceeds of about US $ 1.93 Billion from the unsecured notes and cash on hand to redeem in full the outstanding principal amount of US$ 1.8 Billion at a rate of 4.6% that is due in 2023. The proceeds will also cover any accrued interests and the associated premium.
On a Thursday, Fitch Ratings Inc. rated Sands China’s unsecured notes a ‘BBB’ with a negative outlook. The negative outlook rating stems from Macau’s 2021 gaming revenues being forecast at nearly 65% below that of 2019 before the COVID-19 pandemic.
Fitch further predicted a faster recovery for Singapore, where its parent company, LVS, has a casino license to run the Marina Bay Sands resort.
Fitch also stated that there has been a reduced probability of a downgrade due to LVS’ actions to strengthen its liquidity and its credit profile. Fitch added that LVS plans to spend US$ 400 Million in Macau to finish Cotai Central into the Londoner.
LVS also plans on spending US$ 3.3 Billion in Singapore to expand the MBS venue.