Dropping the Debt with Dice

I like paying off my debts – when my creditors come to break my knees, it’s going to be because I’m cold and six feet under. I like it even more when companies and countries pay off their debts, because it means that the economy might just be finding its feet. While I’m not an economist by any means, I know enough to say that debt is bad and credit is awesome. In an article in the Wall Street Journal, it was reported that Las Vegas Sands Corp. (LVS) plans to repay $1 billion of debt in conjunction with its debt-refinancing plan unveiled earlier this year as the casino operator also extends the maturities of about three-quarters of its $3.9 billion in outstanding U.S. loans by two years.

Shares rose 1.4% to $30.18 in recent trading. The stock has more than doubled this year. That’s what I like to hear!

S&P only expects gradual improvement in performance of the Las Vegas properties over the next few years. Its upswing in revenue reflects continued strong performance in Macau and encouraging initial results from Marina Bay Sands in Singapore.

Las Vegas Sands earlier this year received a strong reception to the opening of its $5.5 billion Marina Bay Sands casino on Singapore’s main waterfront. The casino operator’s strong performance in the Chinese gambling enclave of Macau and prior-cost cutting also have improved the company’s performance–leading to improved prospects for its lower-than-low credit ratings.

The company generates most of its revenue in Asia.