By P.R. Venkat
Sands China Ltd. will raise US$1.5 billion through issuance of two senior notes, proceeds of which will be used to shore up its balance sheet.
The casino operator plans to raise US$800 million through notes that are due in 2026, Sands China said Wednesday. The notes that mature on January 8, 2026 will carry an interest rate of 3.80% per annum.
Separately, the company will also raise another US$700 million through 10-year notes carrying an annual interest rate of 4.375%.
"The company intends to use the net proceeds from the notes for incremental liquidity and general corporate purposes," Sands China said.
Sands said that it has a strong balance sheet and sufficient liquidity in place to fund its operations for next 12 months in the current operating environment caused by the Covid-19 pandemic.
"It is unknown when or how quickly the current travel restrictions will be modified or cease to be necessary and the resulting impact on the willingness of Sands China's customers to spend on travel and entertainment," the casino operator said.
Goldman Sachs, Bank of America Securities and Barclays advised Sands China on the notes issuance.
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