Adelson pumps $475 million into Sands
1 October 2008LAS VEGAS, Nevada -- Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson invested $475 million in his casino company Tuesday evening to resolve any issues surrounding the company's debt covenants.
The company announced the transaction in a filing with the U.S. Securities and Exchange Commission.
Deutsche Bank gaming analyst Bill Lerner said Adelson had to make the investment. Doing nothing would have affected the company's credit and ability to fund future development.
Lerner said earlier this week that Las Vegas Sands could potentially "trip" its credit facility debt covenant because of weakness in the Las Vegas market.
Lerner expected that Adelson, the company's majority shareholder who controls personally and through his family trusts almost 70 percent of Las Vegas Sands, would inject capital into the company.
"While the credit markets are experiencing turbulence, our strategy remains alive and well and our business continues to march forward," Adelson said in a statement. "Little of our fundamental business strategy has changed and this investment will strengthen our capitalization and liquidity position as we continue to execute our plans."
The private transaction covers the company's convertible senior notes that mature on Oct. 1, 2013, and pay cash interest at 6.5 percent. The notes are convertible into common stock at a price of $49.65.
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