Sands China completes US$1bln private notes offering

Macau casino operator Sands China Ltd completed on Tuesday its private offering of an aggregate of US$1-billion in senior unsecured notes, according to filings that day by its United States-based parent Las Vegas Sands Corp, The same day, Sands China told the Hong Kong Stock Exchange it had made an application to list the notes in Hong Kong and to permit them to be dealt in, by professional investors. The instruments are US$700-million of 6.400-percent senior notes due in 2032; and US$300-million of 6.700-percent senior notes due in 2033. Their pricing had been confirmed in an October 28 filing in Hong Kong. The parent reiterated in its Tuesday update that Sands China intends to use the net proceeds from the offering, along with cash on hand, to redeem in full the outstanding principal amount of its US$700-million 2.300-percent senior notes due in 2027 and any accrued interest. Sands China will also use proceeds to repay the outstanding balance on its 2024 revolving facility, and for general corporate purposes, including capital expenditure. Tuesday’s U.S. filings said the notes are general senior unsecured obligations of Sands China. Each series of notes “will rank equally in right of payment with all of Sands China’s existing and future senior unsecured debt and will rank senior in right of payment to all of Sands China’s future subordinated debt, if any,” observed the parent.