Las Vegas Sands secures $1.5 billion revolving credit, MBS expansion to begin in July 2025
Las Vegas Sands Corporation (NYSE: LVS) announced that it has secured a new $1.5 billion credit revolving facility and will begin construction of the $3.3 billion Marina Bay Resort in Singapore in July 2025 Bay Sands expansion project.
The announcement about the credit facility comes after Moody's Investors Service raised concerns earlier this week that the gaming company's plan to pay dividends and buy back its own stock could have a negative impact on higher credit Ratings pose headwinds. Still, the Bank of Nova Scotia revolver is a sign that Sands has access to capital markets and that creditors are willing to lend to the casino giant.
Loans made under the Revolving Credit Agreement will bear interest (x) at the option of the borrower, with an adjusted interest rate equal to the Guaranteed Overnight Financing Rate (or a successor to the Guaranteed Overnight Financing Rate) administered by the Federal Reserve Bank of New York, plus 1.125% per annum to 1.550% per annum, or (y) at the alternative base rate, plus an applicable margin between 0.125% and 0.550% per annum, in each case subject to the "creditworthiness of the Borrower Company" to the Family," it said in a statement to the stated in Sands' Form 8-K filed with the U.S. Securities and Exchange Commission (SEC).
LVS is the largest gaming company by market capitalization and is rated "Baa3" by Moody's with a "stable" outlook.
Marina Bay Sands expansion details
Marina Bay Sands is one of two integrated resorts in Singapore and Sands' only operating location outside of Macau, which means it's crucial to assume some of the risks of operating within China.
It's also one of the world's most valuable gaming brands and one of the most profitable casino resorts, confirming it as a jewel in the Sands portfolio and an important part of the overall investment thesis.
MBS's $3.3 billion expansion, which includes the addition of a fourth tower, is being built by Safdie Architects, the company that built the original building. Sands plans to begin the expansion in July 2025 and complete it in July 2029.
“The all-suite hotel tower will set a new standard in the hospitality industry, the state-of-the-art arena will help attract the most high-profile international entertainment events and artists, while the additional conference and exhibition space will further expand on Singapore’s success.” A leading MICE destination," Sands Chief Financial Officer Patrick Dumont said in a statement. "This significant investment in Singapore will help ensure that Marina Bay Sands is ideally positioned to grow its economic, employment and visitor contribution in the coming years."
Sands Group invests heavily in Singapore
The Marina Bay Sands expansion plans are separate from the $1.75 billion the operator is currently committing to the original structure.
The data confirms that Sands' investment in Singapore venues is delivering long-term dividends for the operator and its investors.
“Since its opening in 2010, Marina Bay Sands has been developed at a cost of US$5.6 billion, bringing significant benefits to Singapore’s tourism industry. More than 470 million people have visited the resort since its opening.” From Marina Bay Sands Since Sands opened, the resort has hosted more than 1,750 MICE events for new Singaporeans, making a significant contribution to Singapore's business tourism appeal. ” .
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Source: www.casino.org
