Sands China Issues US$1 Billion in Notes to Refinance Existing Debt
China.- 29 October 2026 | www.zonadeazar.com Sands China, a subsidiary of Las Vegas Sands and one of Macau’s leading casino operators, has announced a US$1 billion senior unsecured notes offering, divided into two tranches maturing in 2032 and 2033.
The transaction will allow the company to refinance US$700 million in debt originally due in March 2027, while also repaying existing borrowings and strengthening the group’s liquidity.
Sands China confirmed the final terms on 28 October 2026 through a filing with the Hong Kong Stock Exchange. Completion is scheduled for 3 November.
Offering Divided Into Two Tranches
The new financing consists of two series of notes with different interest rates and maturity dates.
The terms are:
- First tranche: US$700 million carrying an annual coupon of 6.4%, maturing on 8 January 2032.
- Second tranche: US$300 million carrying an annual coupon of 6.7%, maturing on 8 November 2033.
The 2032 notes were priced at 99.851% of their principal amount, while the 2033 notes were priced at 99.954%.
Both series will pay interest semi-annually.
The offering enables Sands China to extend a substantial portion of its financial obligations into the next decade.
Barclays, BofA and Goldman Sachs Lead the Transaction
Sands China entered into the purchase agreement on 27 October, New York time.
The transaction involves three major financial institutions:
- Barclays Capital.
- BofA Securities.
- Goldman Sachs.
These institutions are acting as representatives of a broader group of initial purchasers, including banking entities operating in Macau.
The notes will be offered exclusively to eligible institutional and professional investors.
The company also intends to seek a listing on the Hong Kong Stock Exchange.
Early Refinancing of US$700 Million
One of the primary objectives is the full redemption of US$700 million in existing senior notes carrying an annual interest rate of 2.3%.
The notes were originally scheduled to mature on 8 March 2027.
Sands China will use the proceeds from the new offering, together with available cash, to repay the outstanding principal and accrued interest.
The transaction will remove a significant debt maturity ahead of schedule.
However, the new notes carry higher interest rates than the bonds being redeemed.
Company Expects US$989 Million in Net Proceeds
Although the offering has a total principal value of US$1 billion, Sands China expects to receive approximately US$989 million in net proceeds.
The funds will be allocated towards three main purposes:
- Redeeming the notes due in March 2027.
- Repaying borrowings under the company’s 2024 revolving credit facility.
- Supporting general corporate purposes, including capital expenditure.
The final allocation will depend on outstanding obligations and the group’s financial requirements.
Repayment of Revolving Credit Borrowings
The transaction also includes repayment of amounts drawn under the company’s revolving credit facility established in 2024.
The facility has a maximum value of HK$19.5 billion, equivalent to approximately US$2.49 billion.
This arrangement provides access to financing for corporate and operational requirements.
Sands China intends to reduce outstanding borrowings and improve its liquidity position.
The new notes therefore change both the composition and maturity profile of its financial debt.
Fitch and S&P Assign BBB Ratings
Fitch Ratings and S&P Global Ratings have both assigned a BBB rating to the newly issued notes.
The agencies expect Sands China’s leverage to remain broadly unchanged following the transaction.
S&P also noted that redeeming the March 2027 notes would move the company’s next significant bond maturity to August 2028.
Approximately US$1.9 billion in debt will become due at that time.
The assessments suggest that the refinancing improves the maturity schedule without necessarily producing an immediate substantial reduction in overall indebtedness.
CreditSights Sees Manageable Leverage
Financial research firm CreditSights assessed Sands China’s financial position at the end of September 2026.
Its estimates included:
- Total debt: approximately US$6.3 billion.
- Cash balance: US$1.1 billion.
- Gross leverage: 2.8 times.
- Net leverage: 2.3 times.
These indicators measure the relationship between indebtedness and the company’s operating earnings capacity.
CreditSights viewed the decision to address upcoming maturities ahead of schedule positively.
Third-Quarter EBITDA Declines by 12%
The offering follows a quarter of weaker operating profitability for Sands China.
During the third quarter of 2026, the group reported Adjusted EBITDA of US$529 million, representing a 12% year-on-year decline.
The performance coincided with a 3.8% reduction in Macau casino gross gaming revenue.
The figures reflect the challenges faced by the market during the period.
Nevertheless, the new financing allows the operator to reorganise its debt obligations without relying exclusively on short-term revenue performance.
Protection Against Gambling Regulatory Changes
The new notes include a provision addressing potential regulatory changes in Macau.
If an amendment to Macau’s gambling legislation or a decision by gaming authorities prevents Sands China from operating its casinos in substantially the same manner for at least 30 consecutive days, resulting in a material adverse impact, investors may request redemption.
Under these circumstances, the company would be required to repurchase the notes at their principal amount plus accrued interest.
The provision is designed to protect bondholders against specific regulatory risks associated with Macau’s gaming industry.
Five Major Casino Resorts in Macau
Sands China maintains a significant presence in Macau’s casino and entertainment industry.
Its principal properties include:
- The Venetian Macao.
- The Londoner Macao.
- The Parisian Macao.
- The Plaza Macao.
- Sands Macao.
The first four resorts are located in Cotai, while Sands Macao operates on the Macau peninsula.
These properties combine casinos, hotels, retail facilities, restaurants, convention centres and entertainment venues.
The company’s subsidiary Venetian Macau Limited holds one of Macau’s six gaming concessions, which took effect on 1 January 2023.
Industry Impact and Next Steps
The US$1 billion offering will enable Sands China to address a significant debt maturity ahead of schedule and extend part of its financial obligations into 2032 and 2033.
Although the transaction replaces lower-interest debt with more expensive financing, it also provides greater certainty over the company’s repayment schedule.
Completion is expected on 3 November 2026, subject to customary closing conditions.
The transaction is intended to strengthen Sands China’s liquidity, reduce near-term refinancing requirements and preserve financial resources for investment across its Macau casino resorts.
Edited by: @fonta
