Sands China Announces Third Waiver to Its $3bn Facility Agreement

Sands China entered into its third waiver extension regarding its $3 billion 2018 SCL Credit Facility. Under the third waiver extension, the company extended the loan period and amended conditions without suffering penalties.

Sands China Amends and Extends Credit Facility Agreement

Sands China, the subsidiary of US-based operator Las Vegas Sands (LVS), announced Wednesday that it entered into a further waiver extension regarding a $3 billion loan facility. The waiver is in connection with the 2018 SCL Credit Facility. Furthermore, the company negotiated to amend the conditions of the loan, thus extending the period. The waiver marks the third time the company has agreed with the lenders to extend or modify the conditions of the loan. Under the current waiver, Sands China has agreed with the Bank of China, as the lender, to extend the loan period from January 1, 2022, to January 1, 2023.

“On July 7, 2021, the Company entered into a further waiver extension and amendment request letter (the “Third Waiver Letter”) in connection with the 2018 SCL Credit Facility,”

reads a statement released by Sands China

During that time, the company will be able to supply the lender with “audited consolidated financial statements“. Those statements will cover the financial period for the year ending on December 31, 2021, and can be submitted on April 30, 2022. Additionally, Sands China has negotiated to extend the Dividend Restriction Period from January 1, 2022, to January 1, 2023. Considering that the company is pursuing the third waiver, it has agreed to pay “a customary fee to the Lenders that consented to the waivers and amendments.”

The Company Previously Negotiated Two More Waivers

It was back in March 2020 when Sands China announced that it entered into the first waiver and amendment regarding the 2018 SCL Credit Facility. After that, in September of last year, the company entered into a second waiver extension and amendment request regarding the same loan. As a result of the second waiver, Sands China negotiated to increase the size of the facility from $2 billion to $3 billion.

Consequently, the company has agreed that its consolidated leverage ratio at the last day of any financial quarter (as defined in the 2018 SCL Credit Facility) does not exceed 4.00 to 1.00. Additionally, the consolidated interest coverage ratio (as defined in the 2018 SCL Credit Facility) as of the last day of any financial quarter must be greater than 2.50 to 1.00.