Macau casino operator Sands China Ltd agreed to extend the dividend limit by 18 months as part of an approximately $2.49 billion revised and restated facility agreement signed with the lender and completed on Thursday.
The original agreement limited Sands China’s ability to declare or perform dividend payments or similar distributions if the total commitment exceeds $2 billion and the consolidated leverage ratio is greater than 4.00 to 1.00.
The original 2018 contract provided a $2 billion revolving unsecured credit facility. In January 2021, Sands China exercised an option to increase the lender’s total commitment by approximately $494 million.
The period during which Sands China can commit to these dividend limits will be extended to January 1, 2025, rather than the previous deadline of July 31 this year. This follows a filing with the Hong Kong Stock Exchange on Friday. 경마사이트
An exception to this restriction is when the total amount of Sands China’s “Total Amount of Cash and Cash Equivalents” and “Unused Arrangements under Loans and Other Company Credit Facilities in 2018” exceeds US$2 billion after these payments take effect.
According to the latest revision, the total amount of HKD-denominated commitments by expansion lenders is slightly in excess of HK$17.6 billion ($2.25 billion), and the total amount of commitments denominated in US dollars is $237 million.
The revised contract will take effect on July 31 this year, and the termination date of the facility contract will be changed from July 31 this year to July 31, 2025.
Recent changes also modify the definition of Sands China’s “consolidated total liabilities” under the agreement, and Sands China’s liabilities are defined as “sub-liabilities.”
Sands China said the latter covered a $1 billion subordinated unsecured loan facility available to U.S. parent Las Vegas Sands Corp.
The company’s maximum allowable consolidated leverage ratio is governed by a credit facility rewritten by Sands China as amended to an external lender, which should be reduced from 6.25 times for the quarter ending March 31, 2024 to 4.00 times for the quarter ending March 31, 2025.
In April 2020, parents said they would suspend their own dividend program amid the negative impact of the COVID-19 pandemic.
In late January this year, Las Vegas Sands revised certain-term loans in connection with a $1.5 billion revolving credit agreement with bank partners, and as part of that, Sands China’s parent company faced dividend payment restrictions until the end of 2023.