Business Context and Reporting Period
Company: Las Vegas Sands Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: December 11, 2009
Subject: Entry into a Material Definitive Agreement regarding the Marina Bay Sands (MBS) integrated resort project in Singapore.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or general debt levels. The only specific financial figure disclosed relates to a security deposit:
- Security Deposit: Approximately SGD$192 million (paid via banker's guarantee).
- Currency Conversion (as of Dec 11, 2009): US$1.00 = SGD$1.38883.
Material Changes and Agreement Details
On December 11, 2009, Marina Bay Sands Pte. Ltd. (MBS), an indirect wholly-owned subsidiary, and the Singapore Tourism Board (STB) entered into a Supplemental Agreement to the 2006 Development Agreement. Key provisions include:
- Phased Opening: MBS is permitted to open the project progressively in stages throughout calendar year 2010 based on an agreed schedule.
- Delay Provisions: If any component is delayed more than 90 days, MBS must seek STB approval for an extension. The STB is obligated to approve extensions unless the delay exceeds 12 months, extends past December 31, 2011 (the "Target Date"), or results from MBS's recklessness or gross negligence.
- Financial Consequences: There are no financial penalties for missing interim milestone dates. However, if the entire project is not open by the Target Date, the STB may draw on the SGD$192 million security deposit.
- Site Boundary Adjustments: MBS will surrender partial lots to the Singapore government for subway station access, while the government will transfer land to MBS to facilitate a pedestrian bridge integration.
Guidance, Outlook, and Risks
Outlook: The agreement establishes a framework for the project's completion by December 31, 2011, with a phased opening strategy for 2010.
Risks: The primary financial risk is the forfeiture of the SGD$192 million security deposit if the project is not fully operational by the Target Date due to delays not attributable to approved extensions or gross negligence.
Investor Verification Checklist
- Verify the specific interim milestone opening dates for 2010 referenced in the Supplemental Agreement.
- Confirm the current status of construction progress against the agreed schedule.
- Monitor any future filings regarding delays exceeding 90 days for specific project components.
- Review the full text of the Supplemental Agreement for detailed boundary adjustment maps and legal qualifications.