In July 2025, Las Vegas Sands (NYSE: LVS) will begin building on its $3.3 billion Marina Bay Sands expansion in Singapore after securing a fresh $1.5 billion credit line.
Moody's Investors Service voiced concerns earlier this week that the gambling company's plans to repurchase its own shares and pay dividends could be obstacles to a higher credit rating, which prompted the introduction of the credit facility. However, the fact that Bank of Nova Scotia extended the revolver indicates that Sands has access to capital markets and that lenders are willing to make loans to the massive casino operator.
"The loans made under the Revolving Credit Agreement will bear interest at either, at the Borrower’s option, (x) an adjusted rate equal to the secured overnight financing rate as administered by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate), plus an applicable margin ranging from 1.125% to 1.550% per annum, or (y) at an alternate base rate, plus an applicable margin ranging from 0.125% to 0.550% per annum, in each case, depending on the Borrower’s corporate family credit rating,” according to a Sands Form 8-K filing with the Securities and Exchange Commission (SEC).
Moody's has given LVS, the biggest gaming company by market value, a "Baa3" rating and a "stable" outlook.
Details of the Marina Bay Sands Expansion
As Sands' only location outside of Macau, Marina Bay Sands—one of Singapore's two integrated resorts—is essential to mitigating some of the risks involved in conducting business in China.
Additionally, it is among the most lucrative casino resorts and one of the most valuable gaming brands globally, demonstrating its status as a jewel in the Sands portfolio and a key component of the overall investment thesis.
The company that constructed the original property, Safdie Architects, will add a fourth tower as part of the $3.3 billion extension project at MBS. In order to complete the expansion by July 2029, Sands plans to begin building in July 2025.
“The all-suite hotel tower will set new standards of hospitality, the state-of-the-art arena will help attract the highest-calibre global entertainment events and artists, and the additional convention and exhibition space will extend the success of Singapore as a leading MICE destination,” noted Sands CFO Patrick Dumont in a statement. “This significant investment in Singapore will help ensure Marina Bay Sands is ideally positioned to grow its economic, employment and visitorship contributions in the years ahead.”
Sands Making Large Investments in Singapore
The operator's current $1.75 billion budget for the original Marina Bay Sands construction is not related to the aforementioned expansion.
Data demonstrates that Sands' long-term investments in the Singapore venue have benefited both the operator and its investors.
“Since opening in 2010 at a development cost of $5.6 billion, Marina Bay Sands has provided significant benefits to Singapore’s tourism sector, with over 470 million people having visited the resort since its opening. The resort has also meaningfully contributed to the business tourism appeal of Singapore, having hosted more than 1,750 new-to-Singapore MICE events since the opening of Marina Bay Sands,” according to the statement.
