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Feb 25, 2010
LV Sands bets on S'pore
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Las Vegas Sands Corp is looking for clues to the Singapore market from Genting Singapore, which opened the country's first casino resort on Feb 14, the start of the Chinese New Year. -- ST PHOTO: KEVIN LIM
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NEW YORK - LAS Vegas Sands Corp, which will open its US$5.5 billion (S$7.7 billion) Singapore casino resort in late April, plans to renegotiate its US$5 billion US debt by the end of this year, the company's chief operating officer said on Wednesday.
'We want to go to our US lender group and perhaps pay down a little debt ... by the time this year ends, assuming Singapore successfully opens, I think that will happen,' Michael Leven said at the Reuters Travel and Leisure Summit in New York.
He said the company's 130 US lenders will likely seek a paydown of US$1 billion or so as well as a higher interest rate and fees.
The company carries about US$11 billion in total debt - US$5 billion by the US group, around US$3.6 billion in Singapore and US$2.7 billion or so in Macau, he said.
'In the US, our debt covenants require us to hold in the bank US$3 billion in cash,' Mr Leven said. 'We have over US $5 billion now.' The COO said the only risk to Sands' plan is if Singapore doesn't do well. 'We have to do US$400 million in EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortisation) to clear covenants. If we don't do that, we've made a bad investment in Singapore,' he said.
The company is looking for clues to the Singapore market from Genting Singapore, which opened the country's first casino resort on Feb 14, the start of the Chinese New Year. 'We are not disappointed in what we're seeing in Genting, but it's too early to assess,' said Mr Leven. -- REUTERS
LV Sands bets on S'pore
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NEW YORK - LAS Vegas Sands Corp, which will open its US$5.5 billion (S$7.7 billion) Singapore casino resort in late April, plans to renegotiate its US$5 billion US debt by the end of this year, the company's chief operating officer said on Wednesday.
'We want to go to our US lender group and perhaps pay down a little debt ... by the time this year ends, assuming Singapore successfully opens, I think that will happen,' Michael Leven said at the Reuters Travel and Leisure Summit in New York.
He said the company's 130 US lenders will likely seek a paydown of US$1 billion or so as well as a higher interest rate and fees.
The company carries about US$11 billion in total debt - US$5 billion by the US group, around US$3.6 billion in Singapore and US$2.7 billion or so in Macau, he said.
'In the US, our debt covenants require us to hold in the bank US$3 billion in cash,' Mr Leven said. 'We have over US $5 billion now.' The COO said the only risk to Sands' plan is if Singapore doesn't do well. 'We have to do US$400 million in EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortisation) to clear covenants. If we don't do that, we've made a bad investment in Singapore,' he said.
The company is looking for clues to the Singapore market from Genting Singapore, which opened the country's first casino resort on Feb 14, the start of the Chinese New Year. 'We are not disappointed in what we're seeing in Genting, but it's too early to assess,' said Mr Leven. -- REUTERS
