As a part of the fund raising process, the company has decided to sell bonds that are convertible. They worked on to make the deal interesting by providing with 16% to hedge funds and to the fund managers of the pension plans. This has been reported by people from Sands’ investment bank, Goldman Sachs Group Inc. who has personally seen the documents prepared for this reason.
The selling of the bonds is initially expected to bring in $2.5 billion to Hong Kong as a part of the primary public offering provided by the Macau branch of the company in the coming year.
Already existing investors can choose to swap their bonds for the shares and they can indeed continue to get interest payments as they were before at the appropriate timings.
However, Edward Naylor, the spokesman for Goldman Sachs did not comment in this regard when contacted over phone.
The Las Vegas Sands company’s debt is under scrutiny by the investment group specialists. And a recent rating reveals that the company is nearly 6 levels below the investment grade.
Ending July 31, 2009, the shares of the company sank by 16% to $9.35 at the NYSC composite trading; though this is the largest drop ever since April 7, 2009 the overall gain for this year is 58% until date.