March 9, 2012 / 5:38 AM / 6 years ago

BASIS POINT-Las Vegas Sands seeks S$4.6 bln Marina Bay Sands refi

By Foster Wong and Jacqueline Poh	
    HONG KONG, March 9 (Reuters Basis Point) - Las Vegas
Sands Corp, parent of Singapore-based Marina Bay Sands
Pte Ltd, on March 8 sent out invitations to relationship banks,
asking the banks to join its S$4.6bn ($3.67 billion) refinancing
that had been rumoured in the market since early this year,
banking sources told Thomson Reuters Basis Point.	
    Sources said MBS hopes to circle up commitments from key
banks before going out to a wider syndication in April. Banks
which joined at this stage would be joining as mandated lead
arrangers, sources added.	
    Three major Singaporean banks - DBS Bank, OCBC
Bank and UOB - have been appointed as the
global coordinators.	
    Sources said lenders to an existing S$5.44bn facility from
February 2008 will likely be invited. The new deal will in fact
refinance this existing loan.	
    Besides the three Singaporean banks, top-tier lenders to the
2008 loan include Bank of America Merrill Lynch, Bank of
Nova Scotia, Citigroup, Credit Agricole CIB
, Maybank, Goldman Sachs, Lehman
Brothers Asia, RBS, Standard Chartered Bank 
 and Sumitomo Mitsui Banking Corp.	
    Although the existing loan does not mature until August
2015, the borrower is said to be keen to refinance to take
advantage of its strong performance and also to free itself of
restrictive covenants, sources had said earlier. The 2008 loan
paid a top-level all-in of 235bp via a margin of 225bp over the
S$ swap offer rate and a blended average life of around six
    Las Vegas Sands announced in February that its consolidated
adjusted property EBITDA for 2011 increased 58.5% to a record
US$3.53bn. Marina Bay Sands delivered a strong performance for
4Q2011, increasing its EBITDA to a record US$426.9m, up 39.6%
from the US$305.8m registered in 4Q2010.	
    On the new refinancing, the borrower has to maintain a
minimum consolidated interest coverage ratio of 3.5 times, and a
maximum consolidated leverage ratio of four times for the first
five fiscal quarters, and 3.5 times thereafter.	
    The new deal consists of a S$4.1bn six-year term facility
and a S$500m 5.5-year revolving credit facility which includes a
S$100m swing line facility.	
    The revolver is offering a commitment fee that is 40% of the
margin if less than 50% of funds are drawn, or 35% if 50% or
more are drawn.	
    Opening margin on the deal is 185bp over one-, two-, three-,
or six-month S$ swap offer rate for the first six months, and
will be based thereafter on a leveraged grid as shown.	
    Lev.            Margin	
    (times)         (bp)	
    Over 3.5        185	
    < 2.5 - 3.5     165	
    < 1.9 - 2.5     145	
    < 1.0 - 1.9     120	
    Below 1.0       115	
    One source said there is no limit on minimum or maximum
ticket sizes or how much each bank has to commit, and upfront
fees range from 100bp to 200bp.	
    The invited banks are expected to discuss further with the
borrower next week.	
    The term loan amortises in 16 quarterly unequal instalments
after a two-year grace period. The weighted average life is
4.608 years.	
    Meanwhile, the deal could be borrowed via MBS or Marina Bay
Sands LLP - a conversion may take place after the refinancing.
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