he new credit facilities, once entered into, are expected to significantly reduce the company's interest expense, extend the company's debt maturities to 2016, enhance the firm's financial flexibility and further strengthen the company's financial position.
The new facilities will consist of a us$ 3 billion five-year Term Loan A and an undrawn us$ 500 million five-year Revolver. Borrowings under the Term Loan A and the Revolver are subject to a pricing grid and after a 6-month introductory period will have initial pricing set at 2.0% above the London Interbank Offering Rate ("LIBOR"), while pricing for any incremental borrowings under the new credit facilities would be subject to market conditions.
Proceeds from the new senior secured credit facilities coupled with cash on hand will be used to retire the outstanding balances and commitments on Sands China's existing us$ 2.7 billion Venetian Macau Credit Facility and its us$ 1.75 billion Venetian Orient Limited Credit Facility as well as fund the completion of construction of the first two phases of Parcels 5&6 on the Cotai Strip in Macau. The transactions are subject to certain Macao Government approvals and entering into final loan documentation.