• Investing Insights & Exclusive Offers → Get Our FREE “Market Brief”
    Sign-up for our free weekly newsletter. Get unparalleled investing insights and exclusive Summer Sale discounts on Hedgeye research.

    Disclaimer: By joining our email marketing list you agree to receive marketing emails from Hedgeye. You may unsubscribe at any time by clicking the unsubscribe link in one of the emails. Use of Hedgeye and any other products available through hedgeye.com are subject to our Terms Of Service and Privacy Policy

BARCLAYS GETS IPO ROLE FROM SANDS scmp.com

LVS has handed Barclays its first role in a Hong Kong initial public offering in a decade.  Barclays will work on the deal alongside Goldman Sachs, LVS’ regular advisor, which could net the banks $75MM of fees.   Barclays earned the role by helping secure a crucial debt covenant lifeline from its banks after the casino firm almost breached its Macau loan agreements earlier this year.  Sands owes US$3.2 billion to its Macau lenders out of a total debt pile of US$10.4 billion. 

LVS wants to sell US$2.5 billion worth of shares in its Macau unit to repay debt and restart stalled casino projects.  Sand’s bankers face the challenge of convincing investors that it is a good time to invest in Macau and also that the company, highly indebted and with many projects running over schedule, is an attractive investment.  The timing of WYNN’s $1BN IPO in HK may also impact the success of the offering since many portfolio managers may not have room in their portfolios for both listings.

HONG KONG-ZHUHAI-MACAU BRIDGE CONSTRUCTION TO START ON DEC 20 macaunews.com.mo

Construction of the Hong Kong-Zhuhai-Macau Bridge will commence on December 20, on the 10th anniversary of Macau’s return to the motherland.  Zhuhai Vice Mayor Chen Honghui is reported to have announced the date while attending a public function.  The construction of the 29.6km bridge will take five years to complete.  The Bank of China will provide 22 billion Yuan of the total 37.6 billion Yuan of project financing.  The balance of the 70 billion Yuan or $10 billion USD in total investment needed to complete the bridge will be provided by the central government and by the governments of the province of Guangdong and the special administrative regions of Hong Kong and Macau.

MACAU GDP CONTRACTS SHARPLY IN Q2 rttnews.com

Macau’s real gross domestic product contracted 13.7% year-over-year in the second quarter of 2009, following an 11.9% (revised) decline in the first quarter, according to the Statistics and Census Service.  The statistical office said that this was the worst GDP decline since records began.