Sands China Ltd., the Macao casino operator majority-owned by Las Vegas Sands Corp., priced $1 billion of senior unsecured notes to retire bonds coming due next year and pay down bank debt.
The offering includes $700 million of 6.400% notes due 2032 and $300 million of 6.700% notes due 2033, Las Vegas Sands said Tuesday evening. The deal is expected to close on Nov. 3, subject to customary conditions.
Refinancing at higher coupons
Sands China expects net proceeds of about $989 million. Together with cash on hand, the money will be used to redeem all $700 million of its 2.300% senior notes due 2027 plus accrued interest, repay the outstanding balance on its 2024 revolving credit facility and cover general corporate purposes, including capital spending.
The swap highlights how borrowing costs have shifted for issuers refinancing debt sold when rates were low: the new coupons are more than four percentage points above the 2.300% rate on the bonds being retired. Gaming industry trade coverage framed the offering as a refinancing aimed squarely at the 2027 maturity.
Offering details
The notes were not registered under the U.S. Securities Act and are being sold only to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S. They are being offered only to professional investors in Hong Kong, and none will be placed with connected persons of Sands China, according to the company.
