Marina Bay Sands seeks $10B loan to expand its hotel and entertainment business?

SINGAPORE: Singapore’s renowned luxury casino operator, Marina Bay Sands, is said to be seeking a $10 billion loan to expand its hotel and entertainment business. According to private sources who requested anonymity, the Las Vegas Sands Corp-owned resort is poised to initiate the marketing of this deal as early as the next quarter, The Edge Singapore reports.

The plan includes rolling over a delayed drawdown facility, refinancing existing loans, and introducing new deb. However, these deliberations are in their early stages, and the terms of the deal may undergo adjustments. Denying the reports, Ron Reese, Senior Vice President of Global Communications for Las Vegas Sands, stated, “We are neither in the market nor looking for $10 billion in loans.”

If the deal reaches its maximum size, it is poised to set a new record as Singapore’s largest syndicated loan funded in the local currency. This colossal financial move aligns with Marina Bay Sands’ recovery efforts from the pandemic, coinciding with Singapore’s anticipation of a surge in tourists, particularly from mainland China.

In an October filing, Marina Bay Sands’ parent company highlighted the expansion plan’s escalating costs, citing inflation, increased material expenses, and labour costs as key factors. The initially estimated amount of $4.5 billion is expected to be substantially exceeded due to these unforeseen economic challenges.

Sources suggest that Singaporean lenders, including DBS Group Holdings Ltd., Oversea-Chinese Banking Corp., and United Overseas Bank Ltd., may take on the roles of lead mandated arrangers and bookrunners in the new deal, reminiscent of the 2019 loan agreement. Maybank Securities Pte is also expected to be part of this consortium before the deal is more widely syndicated to other lenders.

While a significant portion of the new funds will be allocated to refinancing existing debts, Marina Bay Sands is reportedly considering borrowing an additional amount of up to $2 billion as part of this comprehensive financial package.

It is worth noting that the previous syndicated loan record in Singapore dates back to 2012, with a $9.3 billion facility supporting the acquisition of food and beverage maker Fraser & Neave Ltd. by Thai billionaire Charoen Sirivadhanabhakdi’s TCC Assets Ltd. /TISG