Sands China has priced a US$1bn senior notes offering, one day after announcing plans to approach professional investors for a new debt issuance.
The Macau integrated resort operator entered into a purchase agreement on October 27 with Barclays Capital, BofA Securities and Goldman Sachs as representatives of the initial purchasers.
The offering comprises US$700m of senior unsecured notes carrying a 6.4% annual interest rate and maturing on January 8, 2032, alongside US$300m of notes paying 6.7% and maturing on November 8, 2033. Both series are scheduled to be issued on November 3.
Sands China expects to receive approximately US$989m in net proceeds. Together with cash on hand, the funds will be used to redeem the full outstanding principal of its US$700m 2.3% senior notes due March 2027 and associated accrued interest.
The company also intends to repay the outstanding balance under its 2024 SCL Revolving Facility and allocate funds to general corporate purposes, including capital expenditure. The revolving facility forms part of a broader 2024 credit agreement that included a HK$19.5bn (US$2.5bn) unsecured revolving facility and HK$12.95bn unsecured term loan.
Sands China's board said the issuance is intended to extend the company's debt maturity profile and further strengthen the group's liquidity position.
The notes will rank equally with Sands China's existing and future senior unsecured debt. The company intends to seek their listing on the Hong Kong Stock Exchange, with completion of the offering subject to customary closing conditions.
The notes offering is expected to close on November 3
