Sands to pay preferred stockholders a dividend
Holders of Las Vegas Sands Corp. 10 percent Series A Cumulative Perpetual Preferred Stock will receive a $2.50 per share dividend on Feb. 17; a $26.1 million expenditure for the company that was authorized by the casino operator’s board of directors.
A little more than half of that amount — $13.1 million — will end up with Las Vegas Sands Chairman and CEO Sheldon Adelson.
The stock, issued Nov. 14, helped fund the company’s $2.1 billion capital raising program that saved the casino operator from a potential bankruptcy filing. Las Vegas Sands also halted construction projects in Macau and Las Vegas as part of the capitalization effort.
More than 10.4 million shares of the preferred stock was sold, 5.25 million shares of which were purchased by Adelson and his family. The shares cost roughly $100 per share.
In total, Adelson and his family put more than $1 billion back into Las Vegas Sands last fall to help shore up the company’s sagging finances. The additional stock issued by the company reduced Adelson’s controlling stake in Las Vegas Sands to 51.3 percent.
The preferred stock, which totaled more than $1.04 billion, called for a quarterly dividend payment of $2.50 a share. If the company’s board does not authorize payment, other factors kick in to benefit investors.
Las Vegas Sands, which went public in December 2004, has never paid a dividend on its common stock.