Las Vegas Sands (NYSE: LVS) is reportedly seeking nearly $9 billion through a three-tranche loan to fund the expansion of its Marina Bay Sands resort in Singapore.
The proposed financing—set to be the largest corporate loan in Singapore’s history—includes $5.6 billion in delayed-draw term loans, $2.8 billion in standard term loans, and a $560 million credit facility, Bloomberg reported, citing sources close to the matter. DBS Group, Malayan Banking, OCBC, and UOB are marketing the loan and are expected to bring in additional banks.
The deal, being pitched to a wide pool of institutional investors, is expected to carry an annual interest rate of about 120 basis points.
Costs Far Outpace Initial Estimates
This push for funding comes nearly a year after speculation surfaced that LVS was considering a $7.5 billion loan for the property. If finalized at around $9 billion, the borrowing would nearly triple the $3.4 billion expansion estimate announced in 2019, reflecting rising labor and construction costs.
Despite the ballooning price tag, LVS remains well-positioned financially. The operator holds $4.7 billion in cash and $4.4 billion in undrawn credit, with investment-grade ratings from major agencies ensuring favorable borrowing terms. Capital spending is projected at $1.5 billion in 2024, mainly directed toward Marina Bay Sands and Londoner Macau, before easing to $1.15 billion in 2025.
Fourth Tower in the Works
Funds will primarily go toward building a fourth tower at Marina Bay Sands, further cementing the resort’s position as one of the world’s most valuable and profitable integrated resorts. The expansion is also seen as a defensive move, with new competition expected from Japan and Thailand later this decade.
Currently, Marina Bay Sands is the only property in LVS’s portfolio located outside of Macau, making its continued growth critical to the company’s long-term strategy.
Explore the best online betting site Singapore with Octabet betting news. Start winning today! Register now!
