Sands China gets new waiver on credit facility conditions, hopes to launch Londoner Court hotel before Golden Week
Sands China says it has negotiated a third waiver extension and amendment to the conditions of a US$2.0-billion loan facility it holds.
The British themed resort Londoner Macao had its first phase launch in early February 2021
The changes include the lenders agreeing to extend by one year, to January 1, 2023, the waiver period for the requirement whereby Sands China had to ensure that its consolidated leverage ratio on the last day of any financial quarter does not exceed 4 to 1; and that the consolidated interest coverage ratio on the last day of any financial quarter is greater than 2.5 to 1.
The lenders also agreed to “extend the period of time during which the company may supply the agent with its audited consolidated financial statements for the financial year ended on December 31, 2021, to April 30, 2022”.
Under the new agreement, the dividend restriction period was also extended by one year, to January 1, 2023, inclusive.
The revolving unsecured credit facility – that Sands China had agreed in November 2018 and which is available until July 31, 2023 – is with a number of banks, with Bank of China Ltd, Macau Branch, as agent for the lenders.
Pursuant to the third waiver agreement, “the company agreed to pay a customary fee to the lenders,” added the filing.
On January 25, Sands China had exercised its option to increase the lenders’ total commitments by HKD3.83 billion, which is about US$494 million at the exchange rate at the time.
Sands China did not state specific reasons for the amendments. The company has an ongoing commitment to spend hundreds of millions of U.S. dollars on infrastructure in the Macau casino market, as it completes the revamp of the Londoner Macao casino resort.
The company has said it hopes to launch the Londoner Court hotel at Londoner Macao “in phases” before October Golden Week this year.
Editing by Rachel Hu
