Casino Wins Favored Loan Terms

Las Vegas Sands gets investment-grade treatment despite junk ratings.

Junk-rated Las Vegas Sands Corp., the casino operator controlled by billionaire Sheldon Adelson, is getting investment-grade treatment from banks as cash flow from its properties in Asia outpaces those in the U.S.

Lenders participating in a S$4.6 billion ($3.6 billion) credit facility dropped demands that the Las Vegas based company use any excess cash at the end of its financial year to reduce the loan’s outstanding balance, two people familiar with the matter said on June 4. Typically, only high-grade borrowers are awarded such terms.

19th Richest Person

Val Chua, a spokeswoman for Marina Bay, didn’t respond to e-mails seeking comment on the terms of the financing. Bob Harayda, Marina Bay’s chief financial officer, didn’t return two telephone messages and an e-mail seeking comment.

‘Top Pick’

Las Vegas Sands stock rose 2.4 percent yesterday to $46.10. That’s a gain of 7.9 percent this year and below the April 12 high of $61.05.

‘Decision Process’

Wynn Macau Ltd., the Hong Kong-listed unit of billionaire Steve Wynn’s Las Vegas-based Wynn Resorts Ltd., is offering to pay a starting margin of 250 basis points more than Libor for a loan of $1.5 billion it’s currently seeking from banks in Asia, a person familiar with the matter said on May 24.

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