On August 9, Sands China Ltd. announced plans to offer US$1.95 billion in senior notes to professional investors, another measure meant to boost liquidity during the ongoing Covid-19 pandemic.
The new senior notes will comprise US$700 million of 2.300 percent senior notes due 2027, US$650 million of 2.850 percent senior notes due 2029 and US$600 million of 3.250 percent senior notes due 2031, with the offering expected to close on September 23.
Proceeds of the offering will be used to redeem in full the outstanding principal amount of the company’s US$1.80 billion 4.600 percent senior notes due 2023, plus any accrued interest. The 2023 notes will be redeemed at a redemption price equal to the greater of 100 percent of the principal amount of the 2023 notes or a “make-whole” amount determined by an independent investment banker.
Sands China will apply to the Hong Kong Stock Exchange for the 2023 notes to be delisted.
The issue followed news of a net loss of US$125 million and adjusted EBITDA loss of US$14 million in August following a recent outbreak of Covid-19 across parts of Mainland China, which saw border restrictions with Macau tighten.
The company operates five Macau resorts in the Venetian Macao, The Parisian Macao, the Londoner Macau, Sands Macao and the Plaza Macao.
Sands China also said this week that it continues to maintain a strong liquidity position of US$2.56 billion, consisting of US$556 million of total cash and cash equivalents and US$2.0 billion of available borrowing capacity under its revolving credit facility.
“SCL believes it is able to support continuing operations, complete the major construction projects that are underway and respond to the current COVID-19 pandemic challenges,” it said.
