Tuesday, July 13, 2004 | 10:48 a.m.
Sheldon Adelson's casino resort company on Monday said his upcoming Palazzo resort adjacent to The Venetian on the Las Vegas Strip is expected to open in the first quarter of 2007.
In a statement filed with the Securities and Exchange Commission, Adelson's Las Vegas Sands Inc. said the resort will feature more than 3,000 rooms, a 105,000 square-foot casino and about 375,000 square feet of mall space. As previously reported, the resort will cost about $1.6 billion.
Las Vegas Sands said it began marketing a $975 million senior secured credit facility to help finance the resort. Proceeds will be used "to refinance Venetian's existing credit facility debt, to fund design, development, construction and pre-opening costs for the Venetian's Palazzo casino resort project and to pay related fees and expenses," the company said.
The Palazzo mall is expected to be owned and financed by an unrestricted subsidiary of the Venetian Casino Resort. As previously reported, mall developer General Growth Properties has agreed to purchase the mall once it is built.
To finance the project, the company intends to use the net proceeds from the new senior secured credit facility, a $135 million equipment financing and a $250 million construction loan for the Palazzo mall as well as net proceeds from the recently completed sale of the Venetian's Grand Canal Shoppes mall and operating cash flow.
In connection with the financing, Las Vegas Sands will acquire all of the capital stock of Interface Group Holding Inc. from Sheldon Adelson, the principal stockholder of Las Vegas Sands, in consideration for additional common stock of Las Vegas Sands, the company said. Interface Group Holding indirectly owns the Sands Expo and Convention Center and holds all of the preferred interest in Venetian Casino Resort.
The company is currently exploring alternatives to refinance or repay the indebtedness of the Sands Expo and Convention Center.
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