Sands Casinos offers bonds earning 16% per annum

Taipei News.Net
Saturday 1st August, 2009

Las Vegas Sands, the world's largest casino operator, is to issue convertible bonds to raise up to $400 million.

The coupons will carry an interest yield of up to 16%. According to newspaper reports in China, Goldman Sachs has been recruited to advise on the issue, and a possible local listing on the Hong Kong stock exchange, which could see Las Vegas Sands hive off its Asian assets.

The cash from the convertible bond issue is required to underwrite the continued development of the group's Macau expansion. The company owns and operates The Venetian Macao Resort-Hotel and the Sands Macao in Macau. The company is also creating the Cotai Strip, a master-planned development of resort-casino properties in Macau. At completion, the Cotai Strip will feature approximately 21,000 rooms aligned with hotel brands such as St. Regis, Sheraton, Shangri-La, Traders, Hilton, Conrad, Fairmont, Raffles, Holiday Inn, and InterContinental.

The Las Vegas, Nevada-based company also owns and operates The Venetian Resort-Hotel-Casino, The Palazzo Resort-Hotel-Casino, and the Sands Expo and Convention Center in Las Vegas and the Sands Casino Resort Bethlehem in Eastern Pennsylvania. In addition, LVS owns the Four Seasons Hotel Macao and is also developing the Marina Bay Sands integrated resort in Singapore.

Las Vegas Sands has held up well despite the global recession. Its revenue and profit has declined but only modestly. Net revenue for the second quarter was $1.06 billion, a decrease of 4.8% compared to $1.11 billion in the second quarter of 2008. Consolidated adjusted property EBITDAR in the second quarter of 2009 decreased 14.0% to $247.6 million, compared to $287.9 million in the year-ago quarter.

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