GGRAsia – Sands China draws $201m from revolving facility
Sands China draws $201m from revolving facility
Macau-based casino operator Sands China Ltd on March 15 accessed a total of US$201 million from an existing revolving credit facility, “for general corporate purposes.”
The company has drawn US$19 million and HKD1.42 billion (approximately US$182 million) under an existing credit facility from 2018.
Sands China is a subsidiary of the American company Las Vegas Sands Corp.
The announcement of the use of the credit facility was included in a filing by Sands China with the United States Securities and Exchange Commission, referring to a proposed exercise to refinance existing notes.
Sands China said in the document that it had a “strong balance sheet and sufficient liquidity in place”. This included remaining available borrowing capacity under its 2018 revolver facility of US$1.54 billion.
“Based on current forecasts, the group believes that it will be able to support the continuation of activities, complete the major projects underway and respond to the current challenges of the Covid-19 pandemic for at least 12 months” , or until the end of 2022, says Sands China.
He added: “The group has taken various mitigating measures to manage the current environment, including a cost and capital expenditure reduction program to minimize cash outflows for non-essential items.”
Sands China said last week that it would pay MOP 47 million (approximately US$6 million) as a condition for its Macau casino license to be extended for another six months, until December 31, 2022. The company will also have to provide a bank guarantee to ensure that it can meet meet its labor obligations in the event that it is unable to obtain a new concession after the end of December.
Sands China Ltd reported a net loss of US$245 million in the fourth quarter of 2021, an improvement from the US$423 million reported in the prior quarter. The result compares with a loss of US$246 million a year earlier.