LAS VEGAS-Casino-resort operator Las Vegas Sands Corp. is once again at risk of exceeding the maximum leverage ratio tied to its US senior secured credit facility and FF&E financings and needs to raise more capital. Without any changes to its operations, the company said Thursday it will exceed allowable ratio of net debt-to-trailing 12-month adjusted EBITDA for its Las Vegas properties in the fourth quarter, which could lead to a default.

To avoid breaching the maximum leverage ratio in the third quarter Las Vegas Sands completed a private placement of $475 million in convertible senior notes with its principal stockholder chairman Sheldon Adelson and his family. Between then and now, the company revealed that it is working with its financial adviser “to develop and implement a capital raising program that would be sufficient to address our current and anticipated funding needs.”

In order to comply in the fourth quarter and beyond, the company says it will need to do one or more of the following: decrease the rate of spending on its development projects; obtain additional financing at the parent company level, the proceeds from which could be used to reduce our Las Vegas operations’ net debt; or increase adjusted EBITDA at its Las Vegas properties, which could be achieved by contributing up to $50 million of capital per quarter from cash on hand.

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