Sands China Prices $1 Billion in Bonds at 6.4% and 6.7%
Key Facts
Sands China priced an unsecured bond issue with a total value of $1.0 billion, split into two tranches maturing in 2032 and 2033, according to a company announcement. The pricing follows an initial announcement on October 27, when the issue size and final terms had yet to be determined. The company plans to use the net proceeds, together with available cash, to redeem $700 million of outstanding bonds due in 2027, repay the outstanding balance of its 2024 revolving facility, and fund general purposes, including capital expenditure. The transaction refinances part of the company’s existing obligations, pushing the maturity of the bonds being replaced further out. The offering is expected to close on November 3, 2026, subject to customary closing conditions.
The first tranche is valued at $700 million, carries an annual interest rate of 6.400% and matures in 2032, while the second tranche is valued at $300 million, carries interest of 6.700% and matures in 2033. The two tranches total $1 billion, matching the issue size announced by the company at pricing. The bonds targeted for redemption have a face value of $700 million, carry interest of 2.300% and mature on March 8, 2027. The interest rates on the new issue are therefore higher than the rate on the bonds the company plans to redeem. Net proceeds are expected to be about $989 million, according to Las Vegas Sands, before adding any available cash the company will use to carry out its plan.
The company plans to redeem the full $700 million principal amount of the outstanding bonds, plus any accrued interest, and then repay the outstanding balance of its 2024 revolving facility. The announcement also allocates proceeds for general purposes, including capital expenditure, without specifying a separate amount for each purpose. The allocation combines the retirement of an obligation due in 2027, a reduction in revolving financing, and room to fund the company’s general needs. The company said the net proceeds, together with available cash, would cover the bond redemption and facility repayment. Sands China had $1.09 billion in unrestricted cash and cash equivalents on September 30, 2026.
The transaction follows third-quarter results that showed a divergence between revenue growth and a decline in net income. Net revenue rose 1.4% year over year to $1.93 billion in the third quarter of 2026, compared with $1.90 billion in the same period of 2025. By contrast, net income fell 29.8% to $191 million, from $272 million a year earlier. Las Vegas Sands Chief Executive Patrick Dumont said ongoing investments to improve service and hospitality in Macau contributed to growth in business volumes across all gaming segments compared with the previous year. The figures provide context for the company’s performance in the period before the debt pricing, while the company’s announcement did not directly link the quarterly results to its decision to issue the bonds.
The initial announcement had said that completion of the proposed offering depended on market conditions and investor interest, and that it was intended for professional investors and would not be offered to the public in Hong Kong. The issue is now priced in the two announced tranches, after the final terms had not been set in the initial announcement. The expected closing on November 3, 2026, remains subject to customary closing conditions. Under the announced plan, the company will use the expected net proceeds of about $989 million and available cash to redeem the 2027 bonds, repay the outstanding balance of the revolving facility and fund general purposes. The closing date marks the next step in executing the transaction.