Macao casino operator has announced that it has agreed to extend its dividend-restriction period by 18 months as part of a revised credit facility arrangement that is worth about US$2.5 billion.
The facility agreement signed in 2018 was originally due by the end of July this year, but the lender has agreed to extend the termination date by 2 years to July 31, 2025, according to a statement released by Sands China on 12 May.
The original agreement imposed a restriction on Sands’ ability to declare or make any dividend payment if its total commitments exceeded US$2 billion. Under the new agreement, however, the restriction on non-payment of dividends will be waived if Sands China has more than US $2 billion in cash and the unused commitment is more than US $2 billion.
In addition, the new agreement also modifies the definition of total consolidated debt to exclude any financial indebtedness in respect of subordinated and prior payment entitlements under the amended and restated facility agreement, including a US $1 billion subordinated unsecured term loan facility provided by the parent company, Las Vegas Sands, to Sands China on July 11, 2022.
The new agreement will take effect on July 31, and Sands China has also agreed to pay regular fees to the extended lenders.
