Lead arrangers Wells Fargo and JPMorgan tightened price talk on the term loan B for The Venetian Resort Las Vegas, which was also upsized by $575 million, to $1.75 billion, in a shift from the concurrent secured notes offering, according to sources.
Final pricing for the seven-year covenant-lite TLB is S+325, with a 0% floor and an OID of 99.5. That’s revised from guidance at launch of S+375 with a 99 OID. At revised talk, the yield to maturity is 7.20%, versus 7.83% previously. Lenders are offered six months of 101 soft call protection. In another change, quarterly lender calls were added.
Corporate and facility ratings are B/B2, with stable outlooks, and there is a recovery rating of 3 on the loan from S&P Global Ratings.
Proceeds from the TLB and a now-$600 million issue of seven-year (non-call three) senior secured notes will be used to refinance existing debt. The company will also have a $500 million five-year revolver with a springing net leverage covenant.
The Venetian Resort is an Apollo Global Management-owned property on the Las Vegas strip for gaming, shopping and entertainment, with more than 7,000 hotel rooms across three towers. Apollo acquired the property from Las Vegas Sands in 2022.
Aire Images/Getty Images
Learn about our editorial standards.