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 years. 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. NEW DEAL TERMS 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.