Sands China prices US$1.95 billion in new senior notes

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Eiffel Tower at The Parisian Macao.

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Sands China Ltd has announced plans to offer US$1.95 billion senior notes to professional investors as it continues measures to boost liquidity due to the lengthening COVID-19 pandemic.

The company said Friday (Asia time) that the new senior notes will comprise US$700 million of 2.300% senior notes due 2027, US$650 million of 2.850% senior notes due 2029 and US$600 million of 3.250% senior notes due 2031, with the offering expected to close on 23 September 2021.

Proceeds of the offering will be used to redeem in full the outstanding principal amount of its US$1.80 billion 4.600% senior notes due 2023, plus any accrued interest. The 2023 notes will be redeemed at a redemption price equal to the greater of 100% of the principal amount of the 2023 notes or a make-whole amount determined by an independent investment banker.

Sands China will subsequently make an application to the Hong Kong Stock Exchange for the 2023 notes to be delisted.

The issue of new notes comes just a day after Sands China revealed a net loss of US$125 million and Adjusted EBITDA loss of US$14 million in August following a recent outbreak of COVID-19 across parts of mainland China, which saw border restrictions with Macau tighten.

The company operates five Macau resorts in The Venetian Macao, The Parisian Macao, The Londoner Macau, Sands Macao and The Plaza Macao.

Sands China also said this week that it continues to maintain a strong liquidity position of US$2.56 billion, consisting of US$556 million of total cash and cash equivalents and US$2.0 billion of available borrowing capacity under its revolving credit facility.

SCL believes it is able to support continuing operations, complete the major construction projects that are underway and respond to the current COVID-19 pandemic challenges, it said.