Shifting Las Vegas Sands

Las Vegas Sands Corp. is reportedly considering an initial public offering on its Macau properties in the wake of a recent unsuccessful attempt to sell its casinos and hotels.

The Wall Street Journal reported the company, which operates the Venetian and Sands resort casinos there, has suspended construction on remaining Macau projects because of the company’s heavy debt obligations. The global economic slump, increased competition and Chinese visa restrictions on visitors are also mentioned as compounding the cash-flow problem.

The company has reportedly hired Goldman Sachs Group Inc. to handle the possible IPO offer of its Macau assets but a company spokesman declined to comment to WSJ.

However, the setbacks in Macau have reportedly brought more importance to a company project in the States.

The Sands Casino Resort in Bethlehem, Pa., in the works for several years, is expected to open May 22, according to the city’s Morning Call.
Wall Street analyst Bill Lerner told the paper the Bethlehem project is more important now than ever.

“It would have been inconceivable two years ago, but Bethlehem is now Sands’ best hope to avoid bankruptcy,” Lerner is quoted as saying. “It could literally be the factor that keeps Sands from violating its debt covenants. It’s that important.”

The Bethlehem facility is expected to be a much-needed source of new casino revenue through the end of the year when the $5.4 million Singapore casino is scheduled to open and keep the company afloat, the paper said.