RLPC-Las Vegas Sands seeks to extend, pay down loan

NEW YORK, July 30 (Reuters) - Las Vegas Sands (LVS.N) launched an amendment to its $5 billion credit facility, seeking to pay down $750 million of the outstanding $3.9 billion, and extend approximately $2.25 billion for 2.5 years, buyside sources told Thomson Reuters LPC.

Lenders who extend would receive a 75 basis point bump in coupon to 250 basis points over the London Interbank Offered Rate, or Libor. Consenting lenders would also receive a 10 basis point amendment fee.

The amendment requires 50 percent approval from lenders to pass.

The paydown piece applies only to those who extend for 2.5 years, sources said. Approximately $900 million of the amount outstanding would not be extended.

Following the completion of the transaction, a one notch upgrade is likely from Moody's Investors Service, according to sources.

Thomson Reuters LPC reported Tuesday that the company began sounding out lenders earlier this week on a potential amendment and extension of its $5 billion financing from May 2007.

During a conference call Wednesday to discuss the company's earnings, the company confirmed that it planned to launch the transaction later this week.

Las Vegas Sands entered into its bank loan in May 2007. At the time, the strip included a $3 billion term loan B expiring May 2014, a $600 million, 12-month delayed-draw term loan due May 2014 and a $400 million, 18-month delayed-draw term loan due May 2013. All were priced at 175 basis points over Libor.

Subsequently, the company sought permission from lenders in March 2009 to buy back up to $800 million of the term loan B.

The loans are part of a $5 billion credit led by Goldman Sachs, Lehman Brothers and Citigroup. A $1 billion revolver due May 2012, and priced at LIB+150, fills out the rest of the credit.

Las Vegas Sands operates the Venetian Casino Resort and the Sands Expo and Convention Center in Las Vegas. It also operates the Sands Macao Casino in Macau, China. (Reporting by Leela Parker; Editing by Kenneth Barry)