Las Vegas Sands Corp is seeking to amend its Macau bank loans of about $3.4 billion, a spokesman for the casino operator said on Wednesday.
We are in discussions with lenders regarding possible transactions, said spokesman Ron Reese.
The company has previously said it was considering an initial public offering of its Macau operations, which would require the approval of lenders. Sands has also said it would consider raising cash by selling stakes to private equity firms, getting construction companies involved in its projects to assemble their own financing, or issuing new debt.
Sands, which operates the Palazzo and Venetian resorts on the Las Vegas Strip, two casinos in the Chinese gambling enclave of Macau and one in Pennsylvania, is slated to open another gambling resort in Singapore early next year. Several other Macau projects have been put on hold as the company seeks to avoid violating debt covenants.
Reese declined to comment on a timeframe for the lender discussions, or the degree to which banks are being asked to relax covenant restrictions.
JP Morgan analyst Joe Greff said in a research note on Wednesday that lenders would reportedly receive a 50 basis point fee to approve the proposal, while pricing on the term loan would increase to Libor plus 275 bps from Libor plus 225 bps. (Reporting by Deena Beasley; Editing by Tim Dobbyn)