Is Las Vegas Sands (LVS) Getting Closer to Financing Multi-Billion Spain Resort?

October 17, 2012 9:15 AM EDT
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Nomura Securities analyst Harry Curtis commented on Las Vegas Sands (NYSE: LVS) on unconfirmed SNL press report from yesterday, LVS has received bank "offers to help finance" Sheldon Adelson's vision of a multi-billion integrated resort in Spain.

"We estimate LVS's lead bank group collectively could commit around $1bn, which is just a fraction of what will be needed to build what Mr. Adelson reportedly has in mind," the analyst comments. "At least another $5bn in bank financing would be needed, which could probably carry an interest cost of over 10% unless LVS were to provide a corporate guarantee, which we doubt it is willing to do. The financial community seems to be nearly universally opposed to LVS committing to a multi-billion equity commitment for a development in Spain. We would expect the board to consider the views of all their shareholders."

The firm maintained a Buy rating and price target of $52.00 on LVS.

For an analyst ratings summary and ratings history on Las Vegas Sands click here. For more ratings news on Las Vegas Sands click here.

Shares of Las Vegas Sands closed at $45.84 yesterday.

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