Las Vegas Sands officials confirmed the corporate is in talks with lenders to amend its credit terms concerning bank loans made against its Macau properties. The casino operator has over $3.4 billion in debt in terms of Macau."We are in discussions with lenders regarding possible transactions," said Ron Reese, a spokesman for Sands.
Reese wouldn't touch upon the character of the discussions or the concessions being asked of lenders.Sands officials have stalled ongoing Macau gaming projects to bypass breaking loan covenants, and there's little question the corporate would love more leeway to continue advancing its planned expansions.
Sands has previously allowed that it is going to consider an initial public offering on its Macau possessions, which might necessitate approval by lenders. The corporate has also raised the possibility of alternative cash-generating moves, including taking up more debt or selling stakes in existing properties, either of which might need to be okayed by creditors.
According to Joseph Greff of JPMorgan, Sands creditors tend to receive an upfront fee for amending covenants, plus a rise in interest paid because the loan continues.
Sands is preparing to open a brand new casino resort in Singapore, and still owns undeveloped land in Macau at the Cotai Strip on which it has planned retail and restaurant construction.
Published on July 15, 2009 by JulieWong
Read More... [Source: Macau Casino Gambling News]
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