Las Vegas Sun

June 3, 2012

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Las Vegas Sands completes $600 million financing

Staff and wire services

Tuesday, Sept. 8, 2009 | 10:34 a.m.

Sun coverage

Las Vegas Sands announced today that it has closed and funded its $600 million bond public offering.

The Las Vegas based company said it now has the flexibility to utilize the proceeds from the offering for general corporate purposes.

Last week, the company said it planned to raise $600 million in proceeds from an exchangeable bonds sale as the casino operator looked to boost its liquidity.

The Sheldon Adelson-led company says it will be mandatory for the bonds to be exchanged into common stock of one of its units pending its Hong Kong IPO.

"Earlier this year, the company developed a series of strategic initiatives designed to enhance our liquidity and strengthen our balance sheet. The closing of this financing, in combination with the other measures we have completed to date, demonstrates that we are successfully executing that plan," Adelson said in a statement today.

Adelson said the strategic plan and opening of Marina Bay Sands in Singapore will remain the company’s top priority in the coming months. The $5.4 billion resort is expected to be completed next year.

The company, hurt like other leveraged gaming operators by the worldwide recession, lost $222.2 million or 34 cents per share in the second quarter ending June 30. Interest costs on its $12.8 billion of liabilities -- including $10.6 billion in long-term debt -- totaled $64.8 million in the quarter. Preferred stock obligations cost it another $46.3 million, the company reported.

The company called the $600 million bond sale "pre-IPO'' financing. The notes will pay 9 percent through September 2010. If notes are not converted to stock, the interest rate rises to 12 and then 15 percent through 2014.

Las Vegas Sands President Michael Leven said in a statement last week that the pre-IPO financing is a component of the company's efforts to strengthen its financial position. Other components are the recent completion of an amendment to its $3.3 billion Macau credit facility and the submission of an application by a subsidiary of the company to be listed on the Hong Kong Stock Exchange.

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