U.S.-based casino operator Wynn Resorts Ltd announced on Thursday that its indirect wholly-owned subsidiary Wynn Resorts Finance LLC and a separate related entity are to issue fresh 7.125-percent senior notes due 2031, in the aggregate principal amount of US$600 million. The operation is taking place via a private offering.
The group plans to use the net proceeds from the offering, together with cash on hand, to finance a cash tender offer for any and all of its outstanding 7.750-percent senior notes due 2025, in the aggregate amount of US$600 million. The net proceeds will also be used to redeem any 2025 senior notes that remain outstanding upon completion of the tender offer.
The tender offer, announced also on Thursday, is scheduled to expire on February 15.
According to ratings agency Moody’s Investors Service, “the refinancing is modest credit positive” for the Wynn group, “pushing out a portion” of its 2025 maturities and “improving financial flexibility”.
Wynn Resorts is the parent of Wynn Macau Ltd. Wynn Macau Ltd runs the Wynn Macau gaming resort on the city’s peninsula, and Wynn Palace (pictured), in the Cotai district.
The U.S.-based firm reported operating revenues of US$1.00 billion for the fourth quarter of 2022, a decrease of US$48.2 million in year-on-year terms. Its net income stood at US$32.4 million for the period, compared to a net loss of US$177.2 million a year earlier.
For full-year 2022, Wynn Resorts reported a net loss of US$423.9 million, an improvement on the US$755.8-million loss in the prior year, on operating revenues that were flat in year-on-year terms, at US$3.76 billion.
