THE M3: SANDS CHINA REFI; CRA; BEIJING OFFICIAL VISITS CASINOS; PERMIRA; NAGACORP; S'PORE ECON DATA

The Macau Metro Monitor, June 15, 2011

 

 

SANDS CHINA LTD. ANNOUNCES US$3.5 BILLION REFINANCING LVS

The new facilities will consist of a US$3.0 BN five-year Term Loan A and an undrawn US$500 MM five-year Revolver, maturing in 2016.  Sands will have the option to raise an incremental $1.0BN of new senior secured credit facilities.  After a 6-month introductory period, borrowing rate will be priced at LIBOR +2%.  Proceeds will be used to help pay down Sands' $2.7BN Venetian Macau Credit Facility, $1.75BN Venetian Orient Limited Credit Facility, and for construction of Sites 5 & 6.  The refi is subject to certain Macau Government approvals.


CRA REVIEWING POTENTIAL CASINO JUNKET OPERATORS Channel News Asia

Singapore's Casino Regulatory Authority (CRA) says it is reviewing "more than a handful'' of junket operators to see if they can be given licences to work at the two integrated resorts.  CRA refused to say if any licences would be given out by the end of this year.  

 

WANG GUANGYA VISITS CASINOS Macau Business

The Director of the Hong Kong and Macau Affairs Office of the State Council, Wang Guangya, paid visits to Grand Lisboa and Galaxy Macau yesterday.  This was an unusual move as usually Beijing officials opt to stay away from casinos during their official trips to Macau.

 

PERMIRA MAY BE LOOKING TO TAKE A PROFIT FROM GALAXY: REPORT Macau Business, Bloomberg

Permira Advisers LLC may be looking to sell its US$1.7 billion (MOP13.6 billion) stake in Galaxy Entertainment Group.  The deliberations are still at an early stage and no timing or size of the sale has been decided yet.  Permira bought its 20%  stake in Galaxy in October 2007.


NAGACORP TO INCREASE FOOTPRINT IN PHNOM PENH SCMP 

Cambodian casino operator NagaCorp, which operates Phnom Penh's only full-scale casino, announced it will acquire two development projects in a US$369 million deal to expand its presence in Phnom Penh.  The projects would expand the existing NagaWorld and double the company's developed floor space, and create a two-level pedestrian shopping arcade called NagaCity Walk.

 

Nagacorp’s CEO and majority shareholder, Chen Lip Keong, is privately funding the new projects, which are expected to be completed in 2016.

PRIVATE HOME SALES SLOW DOWN IN MAY Channel News Asia

Singapore's Urban Redevelopment Authority (URA) reported a 12.75% MoM drop in private homes sold in May, from 1,805 to 1,575 units.


S'PORE UNEMPLOYMENT RATE FALLS TO THREE-YEAR LOW Channel News Asia

Singapore's overall unemployment rate fell to a three-year low of 1.9% in March amid healthy economic growth and a tight labor market.


Did the US Economy Just “Collapse”? "Worst Personal Spending Since 2009"?

This is a brief note written by Hedgeye U.S. Macro analyst Christian Drake on 4/28 dispelling media reporting that “US GDP collapses to 0.7%, the lowest number in three years with the worst personal spending since 2009.”

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7 Tweets Summing Up What You Need to Know About Today's GDP Report

"There's a tremendous opportunity to educate people in our profession on how GDP is stated and projected," Hedgeye CEO Keith McCullough wrote today. Here's everything you need to know about today's GDP report.

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Cartoon of the Day: Crash Test Bear

In the past six months, U.S. stock indices are up between +12% and +18%.

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GOLD: A Deep Dive on What’s Next with a Top Commodities Strategist

“If you saved in gold over the past 20 to 25 years rather than any currency anywhere in the world, gold has outperformed all these currencies,” says Stefan Wieler, Vice President of Goldmoney in this edition of Real Conversations.

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Exact Sciences Up +24% This Week... What's Next? | $EXAS

We remain long Exact Sciences in the Hedgeye Healthcare Position Monitor.

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Inside the Atlanta Fed's Flawed GDP Tracker

"The Atlanta Fed’s GDPNowcast model, while useful at amalgamating investor consensus on one singular GDP estimate for any given quarter, is certainly not the end-all-be-all of forecasting U.S. GDP," writes Hedgeye Senior Macro analyst Darius Dale.

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Cartoon of the Day: Acrophobia

"Most people who are making a ton of money right now are focused on growth companies seeing accelerations," Hedgeye CEO Keith McCullough wrote in today's Early Look. "That’s what happens in Quad 1."

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People's Bank of China Spins China’s Bad-Loan Data

PBoC Deputy Governor Yi says China's non-performing loan problem has “pretty much stabilized." "Yi is spinning. China’s bad-debt problem remains serious," write Benn Steil and Emma Smith, Council on Foreign Relations.

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UnderArmour: 'I Am Much More Bearish Than I Was 3 Hours Ago'

“The consumer has a short memory.” Yes, Plank actually said this," writes Hedgeye Retail analyst Brian McGough. "Last time I heard such arrogance was Ron Johnson."

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Buffalo Wild Wings: Complacency & Lack of Leadership (by Howard Penney)

"Buffalo Wild Wings has been plagued by complacency and a continued lack of adequate leadership," writes Hedgeye Restaurants analyst Howard Penney.

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Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

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An Update on Defense Spending by Lt. Gen Emo Gardner

"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

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