Macau casino operator Wynn Macau Ltd plans to issue debt to raise funds – with the amount still to be determined – for general corporate purposes. The latter would include to “repay outstanding indebtedness”, such as under the firm’s “WM Cayman II Revolver and/or one or more series of the existing notes”.
The company told the Hong Kong Stock Exchange on Monday that it is proposing to offer the senior notes to professional investors. “Pricing of the senior notes will be determined through a book building exercise to be conducted by the joint global coordinators and the joint bookrunners,” the firm said.
In a release on Monday, Fitch Ratings Inc said it has assigned a ‘BB-‘ rating to Wynn Macau Ltd’s “anticipated US$500 million of new senior unsecured notes due 2034”.
Wynn Macau Ltd stated in its latest filing: “Completion of the proposed offering of the senior notes is subject to market conditions and investor interest.”
“The board believes that there would be significant benefit to the company in effecting the proposed issuance and using the net proceeds for the intended purpose as it would extend the maturity profile of the group’s indebtedness,” it added.
Wynn Macau Ltd operates the Wynn Macau casino hotel on the peninsula, and Wynn Palace (pictured) in the Cotai district. The firm is a subsidiary of U.S.-based casino operator Wynn Resorts Ltd.
Management at the Wynn group said last week that the Macau unit is spending up to US$250 million this year on concession-related investment commitments made to the local government, including upgrades to the hotel tower at Wynn Macau and on its Wynn Palace resort on Cotai.
The group has also earmarked between US$450 million to US$500 million for Macau-concession related capital expenditure in 2026, according to an investor presentation issued along with the second-quarter results.
The list of concession-related projects includes “Wynn Palace Event and Entertainment Center,” and “Wynn Palace Theater and Resident Show”.
Fitch currently rates Wynn Macau Ltd’s long-term issuer default rating at ‘BB-‘, with a ‘stable’ outlook. The note offering “is leverage neutral,” said the ratings agency.
According to the institution, gross earnings before interest, taxation, depreciation and amortisation (EBITDA) leverage at Wynn Macau Ltd “is 6.5 times and net EBITDA leverage is 4.9 times as of June 30, 2025”.
Fitch said it expects leverage at the casino firm “to decline over time primarily through EBITDA growth”, despite anticipating the company’s operations “to grow marginally in 2025-2028”.
“Gaming revenues and visitation have accelerated since May, but a weaker Chinese economy and the slow return of mass market customers continues to have an impact,” stated the ratings agency.
It added: “Over time, the market should benefit from new amenities, expansion projects throughout Macau and increased visas from certain Chinese provinces.”
