Sands reworks credit deal to allow Macau sale

By Las Vegas Sun Staff (contact)

Published Thursday, Aug. 13, 2009 | 1:10 p.m.

Updated Thursday, Aug. 13, 2009 | 1:37 p.m.

Las Vegas Sands Corp. today said it reworked a credit agreement in a way that would let it sell a minority interest in its Macau operations to raise cash.

Sands stock rose $1.44, or 11.7 percent, to $13.73 following the news.

The amendment to its $3.3 billion Macau credit facility also gives Las Vegas Sands six quarters of relief from some requirements of its debt agreements. Las Vegas Sands also can issue senior secured or unsecured notes in Macau.

Chairman and Chief Executive Officer Sheldon Adelson said in a statement that the amendment boosts financial flexibility.

Also possible is a listing of a minority interest of its Macau operations on an Asian stock exchange

The amendment increases the interest rate for the loans under the credit facility to the London Interbank rate (LIBOR) plus 5.5 percent. If the company successfully completes the sale of a minority interest in its Macau operations and prepays $500 million of outstanding loans, the interest rate will drop to LIBOR plus 4.5 percent per year.

"We have now received the approval of our Macau lenders and completed the amendment of our Macau Credit Facility. This action represents an important step forward in our plan to maintain and improve liquidity. The amendment significantly increases our financial flexibility and permits us to pursue a potential listing of a minority interest in our Macau operations on an Asian stock exchange. We remain confident that the continued execution of our strategy, and the opening of Marina Bay Sands in the first quarter of 2010, will contribute to the successful de-leveraging of the company and will position us to resume our growth strategy in the years ahead," Adelson said in a statement.

Separately, the multibillion-dollar Marina Bay Sands casino-resort under development in Singapore revealed a management shakeup Thursday.

Thomas Arasi was named president and chief executive of Marina Bay Sands, replacing Nigel Roberts; and Ronen Nissenbaum was named head of hotel operations, replacing Tony Cousens. Roberts and Cousens resigned, but the company didn't say why.

Marina Bay Sands, due to open early next year, said Arasi is the former CEO of hotel operator Lodigian Inc. and Nissenbaum was regional vice president of operations in North America for Intercontinental Hotels Group.

The Associated Press contributed to this report.