Sands China is planning to issue new unsecured senior notes worth a total of US$1.95 billion, according to a Friday filing to the Hong Kong Stock Exchange.
The casino operator intends to use the net proceeds from the note issue and cash on hand to redeem the outstanding principal amount of its US$1.80-billion senior notes due 2023, and any accrued interest and the associated premium.
Fitch Ratings has given a ‘BBB-’ rating to Sands China’s new offer of senior unsecured notes. The ratings agency said its negative outlook on the gaming firm’s long-term prospects was mainly due to the fact that Macau’s 2021 gaming revenues are forecast at nearly 65 percent below pre-pandemic levels, and are not expected to fully recover to pre-pandemic performance until 2024.
According to Sands China, the first instalment of the new notes, amounting to US$700 million, carries a yearly interest rate of 2.3 percent, and is due in March 2027. The second instalment is valued at US$650 million, bearing a yearly interest rate of 2.85 percent and matures in March 2029. The last instalment of US$600 million carries 3.25-percent annual interest, and matures in August 2031.
The company added that it had a purchase agreement with Barclays Capital Inc, Bank of America Securities Inc, and Goldman Sachs & Co LLC, as representatives of the initial purchasers of the notes.
Sands China announced on Thursday that it had doubled its monthly loss in August compared with the previous month.