Las Vegas Sands Corp. (LVS, Financial) has announced a major financial development through its subsidiary, Marina Bay Sands Pte. Ltd. ("MBS"). On February 21, 2025, MBS entered into a substantial Facility Agreement, known as the 2025 Singapore Credit Facility Agreement, with DBS Bank Ltd. acting as the agent and security trustee. This agreement is set to provide significant financial backing for both expansion and refinancing activities.
The agreement outlines three key financial facilities: a SGD 3.75 billion (approximately $2.81 billion) term loan, a SGD 750 million (approximately $561 million) revolving credit facility, and a SGD 7.5 billion (approximately $5.61 billion) delayed draw term loan facility. These facilities are designed to support the refinancing of existing debt, cover fees and expenses, and facilitate the Marina Bay Sands integrated resort expansion project.
The term loan and revolving credit facilities are available for use by MBS to refinance outstanding debts, pay fees, and support general corporate purposes. Meanwhile, the delayed draw term loan facility is specifically earmarked for financing the development and construction costs associated with the Marina Bay Sands expansion.
Interest on the borrowed amounts will be calculated based on the Compounded Singapore Overnight Rate Average, plus a variable margin determined by MBS's debt-to-EBITDA ratio. Additionally, a standby commitment fee will be applied to undrawn amounts under the revolving and delayed draw facilities.
The maturity dates for these facilities range from seventy-eight to eighty-four months from the closing date, with specific repayment schedules and conditions outlined in the agreement. MBS is also required to prepay outstanding amounts under certain conditions, such as asset sales or changes in control.
This strategic financial move underscores Las Vegas Sands Corp.'s commitment to expanding its footprint in Singapore and enhancing its financial structure to support future growth. The 2025 Singapore Credit Facility Agreement represents a significant step forward in the company's ongoing development efforts.
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