Two Way Hard Three | Las Vegas Casino & Design Blog

November 10, 2008

Las Vegas Sands Will Raise $2.14 Billion

Posted by Hunter

After posting fairly dismal third quarter results today, Las Vegas Sands indicated that it should have deals in place by the end of the week that will give it access to over $2 billion in new capital.

The company recently informed investors that it was in danger of breaching debt covenants due to leverage issues.

The company is suspending part of its ongoing Cotai Strip development in Macau to focus on its two other projects: Marina Bay Sands in Singapore and Bethlehem, PA casino project. The St. Regis condo project on the Las Vegas Strip will also be suspended.

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20081110&id=9365806

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/11-10-2008/0004922432&EDATE=



Comments

Read archived comments (14 so far)
November 10, 2008 6:50 PM Posted by detroit1051

Business Week offers a dig at Adelson's participation in the conference call and another at the call being 30 minutes late, so Brian's not the only one who called them on it.
http://www.businessweek.com/bwdaily/dnflash/content/nov2008/db20081110_861486.htm?campaign

November 10, 2008 7:09 PM Posted by detroit1051

LVS slots continue to offer lower payback percentages to players than WYNN does according to each company's 3rd Quarter Results.

LVS reported 3rd Quarter slot win at 6.0% compared to 6.2% last year.
WYNN reported 3rd Quarter slot win "within the expected range of 4.5 to 5.5%."

November 10, 2008 9:33 PM Posted by TC from Boston

While I'm no financial wiz...I find it interesting that they are going to suspend the condo project, I would think scaling it back a little would be better than putting it on hold. Considering it will basically be a huge eye sore for the foreseeable future of steel and other junk, atleast when a new tower is being built there is a means to an end, but this is now just going to be Palazzo and Venetian rooms with a view of a 1/4 finished building.

November 11, 2008 7:05 AM Posted by Brian Fey

WOW!!! 181 Million new shares coming onlline today priced at $5.50. Can you say diluted?

November 11, 2008 12:54 PM Posted by GregoryZephyr

This will sound like a tacky idea, but since they said they are going to finish the podium (lower floors) of the condo tower, they could just wrap what's been completed of the upper tower floors in plastic. Slap on some giant signage and, voila, it's just another a big sign. Would blend right in.

November 11, 2008 1:27 PM Posted by Hunter

Another interesting angle:

http://www.lasvegassun.com/news/2008/nov/11/macau-leader-no-plans-to-help-sands-financing/

Macau will not be throwing into the pot for LVS, though they won't let the casinos shut down even if the worst happens.

November 12, 2008 8:42 AM Posted by Hunter

Details of the financing:

http://www.lvrj.com/business/34320339.html

November 12, 2008 8:48 AM Posted by Hunter

An interesting part of the above RJ article - the bit about loss of confidence in LVS management. Sounds like a rift between Weidner and Adelson.

November 12, 2008 9:50 PM Posted by Mike T

Talk of a rift between upper mgmt. and Adelson was in the WSJ article today too. LVS made front page above the fold in the WSJ today.

November 13, 2008 1:04 AM Posted by steve_c

Yay! I can't wait to see the skeleton of the St. Regis tower rotting away on LVB for the next 2-5 years. That will really add a lot to that section of the strip. Nothing like reminding folks on their vacations about how horrible our economy is doing.


Yay.

November 13, 2008 3:37 PM Posted by Mark D

The frame of the St. Regis isn't very tall yet, only about 10 floors. Most people won't even notice it since the bottom is pretty much done. Also, remember, LVS doesn't own the land that they are building the St. Regis on.

November 17, 2008 8:35 AM Posted by Hunter

Las Vegas Sands has removed the 'going concern' language from its statements, meaning that it is solvent enough to satisfy auditors at this time.

November 17, 2008 5:13 PM Posted by Jeff in OKC

Who owns the land that LVS is building St Regis on?

November 23, 2008 10:37 PM Posted by Mark D

Jeff, Steven Johnson of Scottsdale and James Peterson of Albuquerque paid $32.5 million for
the 0.64-acre site and are leasing the air space to LVS for the condo tower.