The casino and resort operator led by billionaire Sheldon Adelson says the amendment extends the maturity of nearly 75 percent of its $3.9 billion in term loans and pushes their maturity to 2015 and 2016.
In addition to strengthening its cash position and overall financial profile, the company also says the payment gives it the opportunity to grow its business in emerging gaming markets.
Las Vegas Sands Corp., which owns properties including The Venetian and The Palazzo in Las Vegas, expects the $1 billion payment to happen later this week.
After its pays off that chunk of debt, the interest rate on the remaining term loans will be at the London Interbank Offered Rate, or LIBOR, plus 2.75 percent. LIBOR is the rate that international banks charge for short-term loans to each other. The $980 million in term loans that were not extended as part of the amendment will continue to accrue interest at LIBOR plus 1.75 percent and will mature in 2013 and 2014.
The company said last month its booming business in China and a new casino in Singapore helped significantly narrow its second-quarter loss. It lost $4.7 million, or a penny per share, in the period, compared with a year ago loss of $222.2 million, or 34 cents per share.
The company reported long-term debt of $10.4 billion as of June 30.
In addition to its properties in Las Vegas, Sands operates casinos in Bethlehem, Pennsylvania, Singapore and the Chinese gambling enclave of Macau. Nearly 80 percent of its revenue in the second quarter came from Asian business.
In midday trading, shares of Las Vegas Sands rose 49 cents to $30.25. Earlier in trading shares hit a 52-week high of $30.47.
