Las Vegas Sands Said to Cut Loan to $2.25 Billion, Boost LineKrista Giovacco
Las Vegas Sands LLC, the casino company controlled by billionaire Sheldon Adelson, reduced the size of a term loan it’s seeking to repay bank debt, while boosting a revolving credit line, according to a person with knowledge of the transaction.
The seven-year loan was cut to $2.25 billion from $2.5 billion, said the person, who asked not to be identified because the terms are private. The revolver was increased to $1.25 billion, from $750 million.
The term piece will pay interest at 2.5 percentage points more than the London interbank offered rate, with a 0.75 percent minimum on the lending benchmark, the person said. The revolver will pay interest at 1.5 percentage points more than Libor.
Lenders are offered the debt at 99.5 cents on the dollar and will receive six months of call protection at 101 cents on the dollar, meaning Las Vegas Sands would have to pay a one-cent premium to reprice the debt in its first six months.
Barclays Plc, Bank of America Corp., BNP Paribas SA, Citigroup Inc., Goldman Sachs Group Inc. and Bank of Nova Scotia are arranging the transaction, which will repay borrowings under the company’s existing credit pact. Las Vegas Sands has about $6.3 billion of debt outstanding, including $1.3 billion that matures next year, according to data compiled by Bloomberg.
In a revolving line of credit, money may be borrowed again once it’s repaid; in a term loan it can’t.