US casino giant and parent company of Sands China, Las Vegas Sands, has announced amendments to its US$1.5 billion credit facility that will see certain requirements temporarily removed but limitations added to its ability to pay dividends.
According to a Thursday filing, lenders have agreed to remove the requirement stipulated in the original August 2019 agreement for LVS to maintain a maximum consolidated leverage ratio of 4 to 1 on the last day of any fiscal quarter from the quarter ending 31 October 2020 through the end of 4Q21.
However, LVS must maintain minimum liquidity of US$350 million on the last day of every quarter during that period and deliver a liquidity certificate to The Bank of Nova Scotia as administrative agent within seven business days of the last day of each month.
Notably, LVS will not be permitted to pay dividends throughout the period unless liquidity is greater than US$1 billion on a pro forma basis after the dividend has been paid.
LVS did not pay a dividend to shareholders following either the first or second quarters of this year, having previously paid a final dividend of US$0.79 on 29 January 2020 for FY19.
The company’s Macau subsidiary, Sands China Ltd, recently announced amendments to its own US$2 billion revolving credit facility including an extension to waiver periods plus the option to increase its commitments by up to US$1 billion.