Las Vegas Sands (LVS) subsidiary Marina Bay Sands (MBS) has secured a substantial multi-billion dollar financing package, totaling approximately $9 billion (SG$12 billion), to support its ongoing expansion project and general operations.
About a week ago, Bloomberg was the first to disclose the relevant news. A filing dated February 24th, 2025, reveals that MBS entered into a significant Facility Agreement with a syndicate of lenders, with DBS Bank Ltd. acting as agent and security trustee.
The comprehensive agreement establishes three key financing mechanisms: a $2.81 billion (SG$3.75 billion) term loan facility, a $561 million (SG$750 million) revolving credit facility, and a $5.61 billion (SG$7.5 billion) delayed draw term loan facility. Together, these facilities provide MBS with enhanced financial flexibility.
The proceeds from the term loan and revolving credit facility will serve multiple purposes, including refinancing existing debt, covering fees and expenses, facilitating potential dividend payments, and supporting general corporate activities.
The substantial delayed draw term loan facility is specifically designated for the ongoing Marina Bay Sands integrated resort expansion project. This project involves significant development and construction, and the financing will cover associated costs, expenses, and fees.
Access to these funds is subject to standard conditions. The term loan facility will be available shortly after the agreement’s execution, while the revolving credit facility extends for 77 months following the initial drawdown. The availability of the delayed draw term loan facility is tied to completion milestones of the MBS expansion project, specifically the issuance of temporary occupation permits.
Repayment obligations are structured with a combination of interim amortization payments and a final balloon payment at maturity. The facilities mature between 78 and 84 months from the initial drawdown. Additionally, the agreement includes provisions for mandatory prepayments under certain circumstances, such as asset sales, new debt issuance, or changes to the Casino License. A change of control of MBS would also trigger repayment requirements.
According to the announcement, the credit facility agreement incorporates standard affirmative and negative covenants, including financial covenants. MBS is required to maintain specific ratios for debt to consolidated adjusted EBITDA, consolidated adjusted EBITDA to consolidated total interest expense, and consolidated net worth.
The agreement allows for equity contributions to cure any potential shortfalls in meeting these financial metrics, within specified limits. The obligations under the agreement are secured by a first-priority security interest in substantially all of MBS’s assets, with certain limited exceptions.
As reported by AGB, the MBS expansion plan is estimated to cost $8 billion, a significant increase from the initial $3.3 billion announced in 2019.
This project will add a fourth hotel tower to the iconic resort, featuring 570 luxury suites, a 15,000-seat arena, and 110,000 square feet of MICE space. Construction is expected to begin by June 2025, with a target opening date of January 1st, 2031.
