Las Vegas Sands May Need Record Loan for Marina Bay Sands Expansion
Marina Bay Sands (MBS) is reportedly embarking on a significant expansion endeavor. The Las Vegas Sands-owned property in Singapore is seeking a substantial SGD10 billion (US$7.4 billion) in bank loans to propel growth in its hotel and entertainment ventures, according to a report by Bloomberg.
A Record-Setting Loan
Internal sources from Las Vegas Sands (LVS) informed Bloomberg that the group is contemplating the start of marketing this ambitious financial deal as early as the next quarter. The proposed plan encompasses various components, such as the rollover of a delayed drawdown facility, the refinancing of existing loans and the issuance of new debt.Related: Singapore's Marina Bay Sands Casino Sets New Revenue Record
If successfully executed, this deal could potentially become the largest-ever syndicated loan in Singapore, financed in the local currency. Despite Bloomberg's report, LVS has firmly denied actively seeking financing, asserting that such endeavors are not currently on its agenda.
In a regulatory filing made in October, LVS disclosed that the cost associated with the expansion plans for its Singapore casino operations is expected to "materially exceed" the initial estimate of SGD4.5 billion (US$3.3 billion). This upward revision is attributed to factors like inflation, as well as escalated material and labor costs.
The expansive project encompasses the construction of a new hotel tower featuring 1,000 rooms and suites, state-of-the-art MICE (Meetings, Incentives, Conferences, and Exhibitions) facilities, a sizable 15,000-seat arena and a luxurious rooftop swimming pool. During the latest conference call, Patrick Dumont, the President and Chief Operating Officer of LVS, indicated that the initiation of works for the MBS new tower expansion is anticipated within six months to a year, contingent on obtaining necessary approvals.
The news follows shortly after an announcement that Miriam Adelson, the widow of the late Sheldon Adelson, who founded Las Vegas Sands (LVS), will become the majority owner of the NBA's Dallas Mavericks. She will reportedly sell part of her stake in LVS to cover the $3.5-billion purchase price. The deal, likely tied to an attempt to convince Texas to legalize casino gambling, still has to be approved by the team, regulators and the NBA.
LVS Continues Singapore Community Support
Through MBS, LVS has a long history of supporting Singapore communities and educational programs. One of its ongoing commitments is the Sands Hospitality Scholarship Program (SHSP), which helps facilitate career development in the hospitality industry through higher education.
The program, which allocates $1 million to educational development, was first announced in August of last year. LVS has now awarded scholarships to 49 students, with another 51 scholarships still to be awarded.
LVS will ultimately invest at least $200 million in workforce development through 2025. Last year, the company provided $56 million to its various workforce development programs, contributing $113 million in total from 2021 to 2022.