The cash injection ``has significantly more favorable terms'' than companies today can obtain in public credit markets, Joseph Greff, an analyst at J.P. Morgan Securities, Inc., said.
The Las Vegas Sands is embarking on its biggest expansion ever. The casino giant is building a $12 billion, 20,000-room complex of hotels and casinos in Macau, China, the $4 billion Marina Bay Sands in Singapore, and the $800 million Sands Bethworks in Bethlehem, Pa.
The cash infusion ``signals that LVS is backstopped in order to execute on its ambitious global growth plans,'' Bill Lerner, a Las Vegas-based analyst at Deutsche Bank AG, said this week. ``It also implies that management will do what it takes to protect its credit.''
Adelson and his family purchased convertible senior notes that mature in 2013 and pay 6.5 percent cash interest. The notes are convertible to common stock at a price of $49.65.
As the world's largest casino company by market value, the shares of the Sands fell $4.79, or 13 percent, to $31.32 at 4:01 p.m. in New York Stock Exchange composite trading.
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Investors ``should understand this needed liquidity injection,'' Joel Simkins, an analyst at Macquarie Securities USA Inc. in New York, said today. ``The company now stands in a better position to receive additional liquidity as it continues to meet with lenders throughout Asia.''
The Sands opened its new Palazzo on the Strip in January.
``While the credit markets are experiencing turbulence, our strategy remains alive and well,'' Adelson, 75, said. ``This investment will strengthen our capitalization and liquidity position as we continue to execute our plans.''
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