Las Vegas Sands is preparing to issue an initial public offering of shares in its Macau properties. The particular casino operator is seeking increased liquidity and the funding necessary to finish stalled tasks, including a proposed retain plus restaurant development on the Cotai Strip.
According to Bloomberg, an unidentified source inside the company confirmed the pending IPO filing, and stated the company is also negotiating changes in its credit covenants. Loan companies would have to approve the sale of any new debt, and also any changes in terms.
Sheldon Adelson, vast majority owner of Las Vegas Sands, says the IPO is really a key part of a plan to raise as much as $4 billion for that gaming operator. New debt may also be created to pay off growing old loans, granting a higher interest rate and perhaps an upfront payment in exchange for a longer lifestyle for the loan.
Adelson has previously discussed exploring selling a group share of some of the Macau holdings to private equity businesses, but no deal has been reached.
The organization has also engaged in belt-tightening measures, resulting almost $500 million in savings in building costs. Company president Jordan Leven says jobs within Macau will be cut by as many as 4000 within the next 8 weeks.
Published on July 19, 2009 by JulieWong