LVS, bank agree on halt to dividends

U.S.-based casino operator Las Vegas Sands (LVS) has made an agreement with a Canadian bank not to declare or pay any dividends until the casino operator’s books return to $1 billion in liquidity, online gambling media GGRAsia has reported. In return, the bank will relax a lending covenant.
LVS is the parent company of Macau-based Sands China and Singapore-based Marina Bay Sands, which owns the iconic tri-tower resort structure with a sky-top pool connecting the three towers.
The Canadian bank is the Bank of Nova Scotia, which has made a “lending covenant” with the gambling enterprise. A financial conglomerate, in which the Canadian bank plays a role, provided a credit facility worth $1.5 billion of senior unsecured revolving credit for the casino operator.
For the second quarter of 2020, LVS has recorded a net loss worth $820 million, which was attributed to the Covid-19 pandemic. The online report pointed out that the casino has been required to maintain a maximum consolidated leverage ratio of 4:1 on the last day of any fiscal quarter during the period from October 31, 2020 up to and including December 31, 2021.
As the new arrangement kicks in, the gambling enterprise will need to maintain a minimum liquidity of $350 million on the last day of each month during the said period. AL