Las Vegas Sands (NYSE: LVS) is pursuing a record-breaking $8.9 billion three-tranche loan to fund the expansion of Marina Bay Sands in Singapore, making it the largest corporate loan in the country's history.

The proposed loan structure includes:

• $5.6 billion in delayed-draw term financing
• $2.8 billion in term loans
• $560 million credit facility

A banking consortium led by DBS Group Holdings Ltd., Malayan Banking Bhd., Oversea-Chinese Banking Corp., and United Overseas Bank Ltd. is marketing the loan to institutional investors with an expected annual interest rate of 120 basis points.

The current $8.9 billion figure represents a significant increase from the original $3.4 billion estimate in 2019, likely due to rising labor and materials costs. Despite the size of the loan, LVS maintains a strong financial position with:

• Investment-grade credit ratings
• $4.7 billion cash on hand
• $4.4 billion available in revolving credit

The expansion plans include constructing a fourth tower at Marina Bay Sands, which remains one of the world's most valuable and profitable gaming brands. This investment is strategically important as regional competition is expected to increase with new integrated resorts opening in Japan and Thailand by the end of the decade.

LVS's current capital expenditure plans include:

• 2024: $1.5 billion (primarily for Londoner Macau and Marina Bay Sands)
• 2025: Expected decrease to $1.15 billion

Marina Bay Sands currently stands as LVS's only property outside of Macau, making this expansion crucial for maintaining its competitive edge in the Asia-Pacific gaming market.

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