Las Vegas Sands (NYSE: LVS) is pursuing an $8.9 billion three-tranche loan to fund the expansion of Marina Bay Sands in Singapore, marking the largest corporate loan in Singapore'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 loan amount has significantly increased from the initial $3.4 billion estimate in 2019, likely due to rising labor and materials costs. Las Vegas Sands maintains strong financial positioning with:

• Investment-grade credit ratings
• $4.7 billion cash on hand
• $4.4 billion undrawn revolving credit facility
• Projected 2024 expenditure of $1.5 billion
• Expected 2025 expenditure of $1.15 billion

The funds will finance the construction of a fourth tower at Marina Bay Sands, one of the world's most valuable and profitable gaming brands. This expansion 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.

Marina Bay Sands remains Las Vegas Sands' only property outside of Macau, making it a crucial asset in the company's portfolio.

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