When someone shares with you something of value, you have an obligation to share it with others.
Tuesday 11 November 2008
Las Vegas Sands Suspends Macau Building, Seeks $2.14 Billion
Las Vegas Sands Corp., the casino company controlled by billionaire Sheldon Adelson, is suspending construction in Macau to conserve cash as it works to raise $2.14 billion in capital following a loss in the third quarter.
Las Vegas Sands Suspends Macau Building, Seeks $2.14 Billion
By Beth Jinks 11 November 2008
(Bloomberg) -- Las Vegas Sands Corp., the casino company controlled by billionaire Sheldon Adelson, is suspending construction in Macau to conserve cash as it works to raise $2.14 billion in capital following a loss in the third quarter.
The Las Vegas-based company expects to finish raising the capital this week, including contributions from the Adelson family, removing the risk of the parent company tripping loan covenants, executives said today on a conference call. A “major Chinese bank” may lend the company as much as $700 million to continue its stalled Macau projects, Adelson said.
Las Vegas Sands needs the cash to avoid violating terms of some U.S. loans and setting off a series of defaults that could force it into bankruptcy. The owner of the Venetian and Palazzo casino resorts on the Las Vegas Strip, where gambling revenue has fallen for eight straight months, said today it’s suspending developments on the Cotai Strip in Macau, China, its Vegas condominiums, and parts of its Bethlehem, Pennsylvania project to focus on finishing construction in Singapore.
Las Vegas Sands needs “more financing to finish what’s on their plate right now in Macau,” Robert LaFleur at Susquehanna Financial Group LLLP, said last month. “That’s exceptionally difficult to come by in this market and that uncertainty has been a significant drag on the stock.”
Shares Decline
Sands, based in Las Vegas, fell 38 cents, or 4.8 percent, to $7.62 at 7:41 p.m. after the close of New York Stock Exchange composite trading. In the past month, it was usurped as the world’s largest casino company by market value. Wynn Resorts Ltd. is now the biggest, followed by MGM Mirage.
The company posted a third-quarter loss of $32.2 million, or 9 cents a share. Excluding some items such as development costs and a loss on the sale of some assets, the company’s earnings per share were 2 cents. That missed the 10-cent average estimate of 18 analysts surveyed by Bloomberg.
Revenue rose to $1.11 billion from $661 million, missing the $1.17 billion average estimate of 12 analysts surveyed by Bloomberg.
The year-earlier loss was $48.5 million, or 14 cents, after Las Vegas Sands incurred expenses preparing to open new casino resorts in Macau and Vegas.
Las Vegas Sands has lost 92 percent of its market value this year on investor concerns that falling casino revenue and the global financial meltdown will leave the company without enough cash to pay for expansion projects or cover its loans.
Goldman Sachs
Billionaire Chief Executive Officer Adelson, who owns about two-thirds of Las Vegas Sands, injected $475 million Sept. 30, hired Goldman Sachs Group Inc. to help raise more capital and said he would participate in the financing. The company made a filing with regulators Nov. 6 to allow it to quickly sell stocks or bonds if it finds investors.
Adelson met with Singapore government officials last week, and pledged to complete the $4 billion project in the city-state. Hong Kong and Macau bankers are also discussing financing for Las Vegas Sands’ Macau projects, said two people involved in the transaction.
In Macau, Las Vegas Sands will stop work on the remaining five phases it had planned on the Cotai Strip until it finds financing. The Macau government is “encouraging” Chinese banks to lend Las Vegas Sands the money it needs to continue the under-construction phases 5 and 6, Adelson said on today’s call.
The company is targeting raising financing in three to six months to finish phases 5 and 6, which are the Shangri-La and Traders tower, the first Sheraton tower and a podium that includes a casino, public areas, part of a mall and a meeting space.
1 comment:
Las Vegas Sands Suspends Macau Building, Seeks $2.14 Billion
By Beth Jinks
11 November 2008
(Bloomberg) -- Las Vegas Sands Corp., the casino company controlled by billionaire Sheldon Adelson, is suspending construction in Macau to conserve cash as it works to raise $2.14 billion in capital following a loss in the third quarter.
The Las Vegas-based company expects to finish raising the capital this week, including contributions from the Adelson family, removing the risk of the parent company tripping loan covenants, executives said today on a conference call. A “major Chinese bank” may lend the company as much as $700 million to continue its stalled Macau projects, Adelson said.
Las Vegas Sands needs the cash to avoid violating terms of some U.S. loans and setting off a series of defaults that could force it into bankruptcy. The owner of the Venetian and Palazzo casino resorts on the Las Vegas Strip, where gambling revenue has fallen for eight straight months, said today it’s suspending developments on the Cotai Strip in Macau, China, its Vegas condominiums, and parts of its Bethlehem, Pennsylvania project to focus on finishing construction in Singapore.
Las Vegas Sands needs “more financing to finish what’s on their plate right now in Macau,” Robert LaFleur at Susquehanna Financial Group LLLP, said last month. “That’s exceptionally difficult to come by in this market and that uncertainty has been a significant drag on the stock.”
Shares Decline
Sands, based in Las Vegas, fell 38 cents, or 4.8 percent, to $7.62 at 7:41 p.m. after the close of New York Stock Exchange composite trading. In the past month, it was usurped as the world’s largest casino company by market value. Wynn Resorts Ltd. is now the biggest, followed by MGM Mirage.
The company posted a third-quarter loss of $32.2 million, or 9 cents a share. Excluding some items such as development costs and a loss on the sale of some assets, the company’s earnings per share were 2 cents. That missed the 10-cent average estimate of 18 analysts surveyed by Bloomberg.
Revenue rose to $1.11 billion from $661 million, missing the $1.17 billion average estimate of 12 analysts surveyed by Bloomberg.
The year-earlier loss was $48.5 million, or 14 cents, after Las Vegas Sands incurred expenses preparing to open new casino resorts in Macau and Vegas.
Las Vegas Sands has lost 92 percent of its market value this year on investor concerns that falling casino revenue and the global financial meltdown will leave the company without enough cash to pay for expansion projects or cover its loans.
Goldman Sachs
Billionaire Chief Executive Officer Adelson, who owns about two-thirds of Las Vegas Sands, injected $475 million Sept. 30, hired Goldman Sachs Group Inc. to help raise more capital and said he would participate in the financing. The company made a filing with regulators Nov. 6 to allow it to quickly sell stocks or bonds if it finds investors.
Adelson met with Singapore government officials last week, and pledged to complete the $4 billion project in the city-state. Hong Kong and Macau bankers are also discussing financing for Las Vegas Sands’ Macau projects, said two people involved in the transaction.
In Macau, Las Vegas Sands will stop work on the remaining five phases it had planned on the Cotai Strip until it finds financing. The Macau government is “encouraging” Chinese banks to lend Las Vegas Sands the money it needs to continue the under-construction phases 5 and 6, Adelson said on today’s call.
The company is targeting raising financing in three to six months to finish phases 5 and 6, which are the Shangri-La and Traders tower, the first Sheraton tower and a podium that includes a casino, public areas, part of a mall and a meeting space.
Post a Comment