Las Vegas Sands authorities confirmed the company is in speaks with lenders to modify its credit terms concerning bank loans made against its Macau properties. The on line casino operator has over $3. 4 billion in debt regarding Macau.
“We are usually in discussions with lenders concerning possible transactions, ” mentioned Ron Reese, a spokesman for Sands.
Reese would not comment on the nature of the discussions or maybe the concessions being asked of lenders. Sands officials have got stalled ongoing Macau gaming projects to avoid breaking loan covenants, and there is small doubt the company would like more leeway to continue advancing its planned expansions.
Sands has previously permitted that it may consider a preliminary public offering on its Macau possessions, which would necessitate approval by lenders. The company has also raised the prospect of other cash-generating moves, including taking on more debt or selling stakes in existing properties, either of which would need to be okayed by lenders.
According to Paul Greff of JPMorgan, Sands creditors are likely to receive a good upfront fee for amending covenants, plus an increase within interest paid as the loan continues.
Sands is preparing to open a brand new casino resort in Singapore, and still owns undeveloped property in Macau on the Cotai Strip on which it has prepared retail and restaurant building.
Published on July 15, 2009 by JulieWong