Se dice que Las Vegas Sands (NYSE: LVS) está buscando un préstamo en tres tramos por casi $9 mil millones para la expansión de su complejo de casino Marina Bay Sands en Singapur. 

Reports about the $8.9 billion in loans, which would mark the biggest corporate borrowing in Singapore’s history, appeared earlier this month with additional details coming to light this week. Unnamed sources familiar with the situation informed Bloomberg News that the loan might be divided into three segments, which include $5.6 billion in delayed-draw term financing, $2.8 billion in term loans, and a $560 million credit facility. 

DBS Group Holdings Ltd., Malayan Banking Bhd., Oversea-Chinese Banking Corp., and United Overseas Bank Ltd. are the financial institutions promoting the loan, and this consortium is said to be looking for support from additional banks. 

Sources informed Bloomberg that the Marina Bay Sands credit is being promoted to a wide range of institutional investors and is anticipated to have an annual interest rate of 120 basis points. 

 

Costs for Expanding Singapore's Casino Increase 

Rumors about Sands pursuing $9 billion in credit emerged almost a year after similar rumors arose that LVS was seeking $7.5 billion to improve and expand the Singapore integrated resort. 

If the operator's loans for Marina Bay Sands reach approximately $9 billion, it will significantly exceed the initial estimate of $3.4 billion stated by LVS in 2019. That might indicate a sign of constrained labor markets and increased material expenses. 

Las Vegas Sands, the parent organization of the holding company overseeing Marina Bay Sands, holds investment-grade credit ratings from the three leading rating agencies, indicating that the company can readily access capital markets and has the ability to borrow at comparatively favorable interest rates. That investment-grade rating is pertinent for promoting the Singapore loan to conservative investors seeking income while avoiding junk-rated debt. 

In terms of the gaming industry, Sands maintains a robust balance sheet with $4.7 billion in available cash and $4.4 billion undrawn on a revolving credit line. The firm is anticipated to invest $1.5 billion this year, primarily focusing on Londoner Macau and Marina Bay Sands in Singapore. Spending for 2025 is projected to decrease to $1.15 billion. 

 

Expansion of Singapore Casino Essential 

The approximately $9 billion that Sands aims to borrow for the Singapore casino hotel will finance the building of a fourth tower at this landmark site, and this investment may yield long-term benefits. 

Marina Bay Sands ranks among the top gaming brands globally, and its gaming venue stands out as one of the most lucrative of its type. At present, it is the sole asset in the LVS portfolio located outside of Macau. 

Strengthening Marina Bay Sands is crucial from a competitive perspective since, by the end of this decade, regional rivalry is expected to escalate with the launch of integrated resorts in Japan and Thailand.