Las Vegas Sands (LVS) is one of the most productive casino operations in the world. Nonetheless, it would seem that even the behemoth sometimes has difficulty in settling its debts.
On Monday, the company submitted an amendment to the Securities and Exchange Commission (SEC), notifying it that it had extended the maturity of the term loans of Marina Bay Sands casino in Singapore.
The Marina Bay term loans have been extended for around three and a half years after the initial date. They had originally been scheduled for pay off on August 28, 2020, but that has now been pushed back to March 29, 2024. The casino giant’s revolving loans will expire on September 29, 2023, having been extended from the original date of February 28, 2020. Both loan segments have provided a total of $3.9 billion to the company. They were originally issued in 2012.
Under terms of the new agreement, the term loans were amended with a new amortization schedule that starts in April of this year and provides 0.5% due at the end of each quarter until the end of the first quarter of 2022. At the end of that period, LVS will pay 5% at the end of each quarter for a year, followed by 18% each quarter until the loan matures in March of 2024.
LVS has reported revenue of $14.5 billion with net income of around $2.84 billion. It controls $22.3 billion in assets and has operations in the U.S., Singapore and Macau. The Marina Bay Sands was opened in 2010 with a price tag of $8 billion. At the time it was billed as the most expensive freestanding casino in the world. The resort, which spans more than 49 acres, offers 500 gaming tables and 1,600 slot machines, a 2,561-room hotel and a 1.3-million square-foot convention center.
Earlier this month, Senior Vice President of Investor Relations Daniel Briggs told investors during the JP Morgan Gaming, Lodging, Restaurant and Leisure Management Access Forum in Las Vegas, Nevada, “This company is not a big financial engineer… We try to allocate capital prudently.” He must have been referring to the $12.7-million salary given to the company’s founder and CEO, Sheldon Adelson.