Sands China prices US$1.0bn notes as analysts call debt manageable
Deal keeps leverage broadly unchanged while Q3 EBITDA and margins face pressure
Key Takeaways
- Sands China priced US$1.0 billion of senior unsecured notes: US$700 million at 6.4% due January 2032 and US$300 million at 6.7% due November 2033.
- CreditSights estimated gross leverage at about 2.8x and net leverage at about 2.3x at end-September, with total debt of roughly US$6.3 billion and US$1.1 billion in cash.
- Third-quarter adjusted EBITDA fell 12% year-on-year to US$529 million and the EBITDA margin narrowed to 27.3%, down 4.2 percentage points.
- Net proceeds of US$989 million will redeem US$700 million of notes due March 2027, repay revolver borrowings and fund capex.
- Renovations at The Venetian Macao will keep approximately 500 rooms out of service through Q4 2027, with reintroduction by Chinese New Year 2028.
Sands China Ltd priced US$1.0 billion of senior unsecured notes on Wednesday, selling US$700 million carrying a 6.4% coupon due January 2032 and US$300 million carrying a 6.7% coupon due November 2033. CreditSights, Fitch Ratings and S&P Global Ratings all said the offering should leave the company’s leverage broadly unchanged even as Macau earnings showed strain in the third quarter.
Debt metrics and use of proceeds
The company ended the third quarter with approximately US$6.3 billion in total debt and US$1.1 billion in cash, leaving net debt at about US$5.2 billion, CreditSights calculated. The research firm estimated Sands China’s gross and net leverage at roughly 2.8 times and 2.3 times, respectively, at the end of September.
Sands China said net proceeds of US$989 million from the note exercise, together with cash on hand, will redeem US$700 million of notes due in March 2027, repay revolving credit facility borrowings and support general corporate purposes, including capital expenditure. Fitch expected the company’s US$2.5-billion revolving facility to be fully available following repayment using the offering proceeds.
S&P noted the refinancing pushes the operator’s next notes maturity to August 2028, when US$1.9 billion of notes fall due.
Ratings and analyst view
CreditSights described the company’s debt levels as manageable despite earnings pressure from a softer third quarter. The firm pointed to growth in gaming volumes and a gain in market share as partial reassurance after weaker high-end demand and an unfavourable mass-market win rate hit earnings.
Fitch and S&P each assigned a ‘BBB’ rating to the proposed notes in separate memos issued on Tuesday. Fitch said liquidity, alongside access to capital markets, was sufficient to meet near-term needs. S&P highlighted the effect of the refinancing on the timing of the next maturity.
Operating results and market dynamics
CreditSights reported Sands China’s third-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell 12% year-on-year to US$529 million. The company’s EBITDA margin narrowed to 27.3%, down 4.2 percentage points from a year earlier. Despite the decline in EBITDA and margin, CreditSights said gaming volumes increased across all of Sands China’s segments.
The research firm estimated Sands China’s overall Macau gaming market share at 25.5%, up from 23.7% in the preceding quarter and 23.5% a year earlier.
Portfolio disruption and capital works
Sands China is a subsidiary of Las Vegas Sands Corp and operates The Venetian Macao, The Londoner Macao, The Parisian Macao, The Plaza Macao in Cotai and Sands Macao on the peninsula. CreditSights flagged renovation work at The Venetian Macao, noting about 500 rooms would be out of service on average through the fourth quarter of 2027, with the refreshed property due to be reintroduced by Chinese New Year 2028.
On a conference call discussing third-quarter results, Sands China management said the company had “received very strong feedback from the customers who have experienced the new suites”, after circa 600 units of The Venetian Macao had already been released to the market.
"Received very strong feedback from the customers who have experienced the new suites," Sands China management said on the earnings call.
The note offering and the company’s decision to address near-term maturities early were welcomed by CreditSights as they reduce short-term refinancing risk, even as earnings and renovation-related disruption create ongoing operational pressure.
Frequently Asked Questions
How much did Sands China raise with its latest note offering?
Sands China sold US$1.0 billion of senior unsecured notes, split into US$700 million at a 6.4% coupon maturing in January 2032 and US$300 million at a 6.7% coupon maturing in November 2033. Net proceeds were US$989 million after the exercise.
What are Sands China’s leverage and net debt figures?
CreditSights calculated gross leverage at approximately 2.8 times and net leverage at approximately 2.3 times at the end of September, with total debt of about US$6.3 billion, cash of US$1.1 billion and net debt near US$5.2 billion.
How did Sands China’s operating performance look in the third quarter?
Third-quarter adjusted EBITDA fell 12% year-on-year to US$529 million, and the EBITDA margin narrowed to 27.3%, a decline of 4.2 percentage points versus the prior year, while gaming volumes increased across all segments.
What will Sands China use the offering proceeds for?
Net proceeds of US$989 million, together with cash on hand, will redeem US$700 million of notes due in March 2027, repay revolving credit facility borrowings and support general corporate purposes including capital expenditure.
What renovation work is affecting Sands China’s operations?
Renovation at The Venetian Macao is expected to keep about 500 rooms out of service on average through the fourth quarter of 2027, with the refreshed property due to be reintroduced by Chinese New Year 2028; around 600 upgraded units have already been released to the market.
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About the author
Oliver Grant
Industry Technology Correspondent
Oliver Grant covers the technology and business machinery of iGaming — platform and data deals, AI and compliance tooling, affiliate and marketing shifts, and the quarterly numbers behind them. The reports lead with the announcement, name the vendors and figures exactly as published, and separate genuine capability from press-release promise. When a supplier ships a new engine or a regulator tightens ad rules, Oliver Grant explains what actually changes for the companies involved.
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