Las Vegas Sands to pay down more than US$1b debt

LAS VEGAS Las Vegas Sands Corp. will pay down more than US$1 billion in outstanding debt in conjunction with a previously announced proposed amendment of its credit facility.

“We are pleased to announce that we are paying down over US$1 billion of debt, which significantly advances our deleveraging strategy,” says Chairman and Chief Executive Officer Sheldon Adelson. “Additionally, the successful execution of this amendment has extended our debt maturities at favorable interest rates, strengthened our balance sheet, meaningfully enhanced our liquidity and leaves our company well positioned to pursue additional growth opportunities in emerging gaming markets.”

The amendment of the credit facility extends the maturity of nearly 75% of the company’s approximately US$3.9 billion of outstanding term loans to 2015 and 2016. After pay-down of the extended term loans, which is anticipated later this week, the interest rate on the remaining principal balance of the extended term loans will be LIBOR plus 2.75%. The US$980 million of term loans that were not extended as part of the amendment will continue to accrue interest at LIBOR plus 1.75% and will mature in 2013 and 2014, consistent with the original terms of the loans.

In addition, the amendment also extends to 2014 more than US$530 million of revolving commitments from certain of the lenders at an interest rate of LIBOR plus 2.5%. The company has no amounts outstanding on the revolving portion of the credit facility at this time.

The amendment also favorably modifies the leverage covenants on the facility.