Sands China issues promissory notes to repay loans

Macau Sands China Ltd. has finance problems

Macau Sands China Ltd, a casino operator, will issue promissory notes in order to collect an unsettled amount for the payment of debts, as well as general corporate purposes, including capital expenditures.

On Thursday, the company said it was going to offer debt to professional investors who are qualified institutional buyers.

The parent company of Sands China, Las Vegas Corp, published a written statement in which it announced plans to issue senior unsecured promissory notes denominated in US dollars. In addition, general amounts, interest rates and other important terms of the offer will be determined at the time of setting the price.

Sands China noted that net proceeds from bond sales will be used to pay off debts for the remaining period, which became possible due to the closed subsidiary of Venetian Macau SA. According to Fitch Ratings Inc. total debt of Venetian Macau SA and its affiliates is $ 4.8 billion.

On Wednesday, Las Vegas Sands announced an estimate of the proposed capital expenditure in Macao until 2020. The company will spend more than $ 1 billion this year, $ 1.25 billion - next year and $ 770 million - in 2020. The costs will be directed to the operation of Sands Cotai Central's infrastructure facilities, expansion, renovation and re-branding in The Londoner.

"Las Vegas Sands' decision to issue unsecured debt shifts the company to the bottom of the investment grade rating," said Keith Fowley, senior vice president at Moody's Investors Service Inc.

For the proposed issue of debt, Sands China appointed joint agents for the registry of Barclays Capital Inc., Goldman Sachs & Co LLC and Merrill Lynch, Pierce, Fenner & Smith Inc, which will set a price for these securities.

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