Las Vegas Sands Seeks Record $8.9B Loan Package for Singapore Casino Expansion
Las Vegas Sands (NYSE: LVS) is pursuing an $8.9 billion three-tranche loan for the expansion of Marina Bay Sands in Singapore, potentially marking the largest corporate loan in Singapore's history.
Marina Bay Sands Singapore at night
The proposed loan structure includes:
- $5.6 billion in delayed-draw term financing
- $2.8 billion in term loans
- $560 million credit facility
A banking consortium led by DBS Group Holdings Ltd., Malayan Banking Bhd., Oversea-Chinese Banking Corp., and United Overseas Bank Ltd. is marketing the loan with an expected annual interest rate of 120 basis points.
The current loan amount significantly exceeds the original 2019 estimate of $3.4 billion, likely due to increased labor and materials costs. Las Vegas Sands maintains strong financial positioning with:
- Investment-grade credit ratings
- $4.7 billion cash on hand
- $4.4 billion undrawn revolving credit facility
- Projected 2024 expenditure of $1.5 billion
- Expected 2025 expenditure of $1.15 billion
The borrowed funds will finance the construction of a fourth tower at Marina Bay Sands, strengthening its position as one of the world's most profitable gaming venues. This expansion is strategically important as regional competition is expected to increase with new integrated resorts opening in Japan and Thailand by the end of the decade.
Marina Bay Sands remains Las Vegas Sands' only property outside of Macau, making it a crucial asset in their portfolio.