Las Vegas Sands $2.25B leveraged loan enters trading above OID; terms

las-vegas-sands_200x200The $2.25 billion TLB for Las Vegas Sands broke for trading today at 99.625/100.125, from issuance at 99.5, sources said. The seven-year loan is priced at L+250, with a 0.75% LIBOR floor. Proceeds will be used to refinance the publicly traded gaming concern’s outstanding bank debt. Barclays, Citi, Bank of America Merrill Lynch, BNP, Goldman Sachs, and Scotia arranged the loan, which cleared at the wide end of an initial L+225-250 range and was scaled back by $250 million. With the reduction to the TLB, the gaming concern will borrow against its revolving credit (L+150), which was in turn increased to $1.25 billion, from $750 million initially, though sources note the company plans to use the first $500 million of proceeds from the sale of its Sands Bethlehem property to repay borrowings and permanently reduce borrowing capacity under the facility. Via the refinancing, the issuer is shifting its term loan to a covenant-lite structure; the new revolver will be governed by a total-net-leverage test. Terms:

Borrower Las Vegas Sands
Issue $2.25B term loan B
UoP Refinance bank debt
Spread L+250
LIBOR floor 0.75%
Price 99.50
Tenor seven years
YTM 3.38%
Call protection six months 101 soft call
Corporate ratings BBB-/Ba2
Facility ratings BBB-/Ba2
S&P recovery rating N/A
Financial covenants none
Arrangers/bookrunners Barc, Citi, BAML, BNP, GS, Scotia
Admin agent Scotia
Px talk L+225-250/0.75%/99.5
Notes Decreased by $250M

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