The Macau Metro Monitor, June 7, 2012
CHINA PBOC CUTS INTEREST RATES Reuters
The 1-year lending and deposit rate will be cut by 25bps, effective June 8. Banks will also be allowed to lend at 20% below the current floor for lending rates, greater than the previous 10% allowance.
ADELSON WINS FAVORED TERMS FOR CASINO LOANS: CORPORATE FINANCE Bloomberg
LVS is getting investment-grade treatment from banks. Lenders participating in a S$4.6 billion ($3.6 billion) credit facility for MBS dropped demands that LVS use any excess cash at the end of its financial year to reduce the loan’s outstanding balance. Typically, only high-grade borrowers are awarded such terms.
The loan will pay interest at a rate of 185bps more than the Singapore dollar swap offered rate. The margin is 40bps narrower than what the company paid to borrow $3.2 billion in November, and 65bps less than its cost for $1.4 billion in 2010. Proceeds will be used to refinance debt and the loan may be split into a S$4.1 billion term facility that matures in six years and a S$500 million revolving credit facility due in 5.5 years.