Sands China amends terms on $2b credit facility

Sands China says its lenders have agreed to amendments to a US$2 billion revolving credit facility to avoid being declared in default if some conditions are not met during the crisis.

The company said lenders have agreed to waive the requirements for the company to ensure that its consolidated leverage ratio does not exceed 4 to 1 on the last day of any financial quarter. 

The lenders also agreed to waive a clause stating that the consolidated interest coverage ratio at the end of the quarter is greater than 2.5 to 1. The waiver is in place through to the quarter ending July 2021. 

The amendments also include a waiver on any default that may arise as a result of a breach of the aforesaid debt and interest covenants. The company has also secured a relaxation of the deadline to submit its financial reports for 2019 to April 2020 and for the 2020 year to April 2021.

Sands China entered into the credit facility with a group of lenders, with the Bank of China as the agent, in November 2018. It expires in July 2023.