Recently, the Asian arm of Las Vegas Sands (LVS), Sands China, struck a deal with its creditors to alleviate certain demands linked to its credit lines. In need of some relief from the revenue problem caused by Covid-19, the business wants to ensure that it will be able to meet its financial commitments.
Despite reporting that it has nearly $ 2.5 billion in net assets and $ 4.2 billion reported at the end of the second quarter, it has followed in the footsteps of its subsidiary and has now secured its own deal with creditors.
LVS filed a notice with the United States Securities and Exchange Commission (SEC) this week, indicating that it and the Bank of Nova Scotia, along with other creditors, have agreed to make changes to the terms of a $ 1 revolving line, 5 billion credit.
New Las Vegas Sands deal
Going forward, the company led by Sheldon Adelson is expected to maintain liquidity of at least $ 350 million, recorded on the last day of each month.
However, as was the case with the Sands China deal, dividend payments are now off, unless you maintain more than $ 1 billion in liquidity “on a pro forma basis” after paying dividends.
The SEC filing explains: “In accordance with the Amendment, the Existing Revolving Credit Agreement has been modified to (a) remove the requirement for the Borrower to maintain a maximum consolidated leverage ratio of 4.00: 1.00 from the last day of any business fiscal quarter during the period beginning October 31, 2020, up to and including December 31, 2021 “.
Given the fact that previously, annual dividend payments hovered around $ 3.16 per share, shareholders are unlikely to be very satisfied with the deal.
Based on that amount, the casino operator could be left with about $ 2.34 billion if he makes no payments, but Adelson will certainly do what he can to restore the dividends.
After all, he and his wife, Miriam, are the biggest benefactors of paying dividends, since their 397 million shares added up to $ 1.25 billion.
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